Vendor managed inventory with fixed shipping cost allocation
2019
Yes
vendor-managed inventory VMI locally-managed inventory LMI collaborative replenishment incentives
This paper examines the effectiveness of a vendor-managed inventory (VMI) system in a decentralised supply chain. Specifically, a two-tier supply chain with one vendor and multiple buyers is analysed under two replenishment models – an LMI system and a VMI system with vendor coordination that includes retailer incentives and cross-docking at the vendor. The impact of supply chain design parameters (number of retailers and retailer heterogeneity), and a policy parameter (shipment frequency) on the effectiveness of the VMI system is studied. Using an analytical model as well as numerical experiments, we find that incentive-aligned contractual arrangements can be made between the vendor and the retailers through reallocation of fixed shipping cost savings arising from VMI.
Joong Y. Son & Subhadip Ghosh (2019) Vendor managed inventory with fixed shipping cost allocation, International Journal of Logistics Research and Applications (Impact factor 2.828).
https://doi.org/10.1080/13675567.2019.1568974
Journal Articles
English
https://library.macewan.ca/cgi-bin/SFX/url.pl/BOH
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