Vendor Managed Inventory (VMI) is a business practice in which vendors monitor
their customers&rsquo / inventories, and decide when and how much inventory should be
replenished. VMI has attracted a lot of attention due to its benefits. In this study, we
analyze the benefits of VMI in a supply chain consisting of a single retailer and a
single capacitated supplier under stochastic demand. We propose a VMI setting and
compare the vendor managed system with the traditional system to quantify the
benefits of VMI. In our proposed VMI system, the retailer shares the inventory level
information with the supplier, which is not available in traditional system / and the
supplier is responsible to keep the retailer&rsquo / s inventory level between the specified
minimum and maximum values, called (z,Z) levels, set by a contract. We examine
the benefits of such a VMI system for each member and for the overall chain / and
analyze the effects of system parameters on these benefits. The performance of VMI
in coordinating the overall chain is examined under different system parameters.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/12612622/index.pdf |
| Date | 01 October 2010 |
| Creators | Gunes, Hurdogan |
| Contributors | Savasaneril, Secil |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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