The Experts below are selected from a list of 2784 Experts worldwide ranked by ideXlab platform
Martin Dresner - One of the best experts on this subject based on the ideXlab platform.
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beyond information sharing an empirical analysis of vendor managed inventory
Production and Operations Management, 2014Co-Authors: Yan Dong, Martin Dresner, Yuliang YaoAbstract:Using a unique, item-level data set, we examined benefits to downstream firms (distributors) from the decision-transfer component of vendor-managed inventory (VMI), the feature that distinguishes VMI from other information-sharing, collaborative supply chain programs. Our major findings are that the decision-transfer component of VMI adds significant benefits to the downstream firm in terms of inventory and stockout reductions above and beyond information sharing, and that these two benefits may be realized at different times following VMI implementation; that is, inventory reduction, initially, may be the major benefit to distributors from VMI, while the benefits of stockout reduction may more likely be realized after the first year of implementation. In addition, VMI provides benefits to the upstream firm (manufacturer) by reducing the downstream firm's inventory variability, a likely contributor to the bullwhip effect. Based on our empirical analysis, the decision-transfer component of VMI, on average, reduces inventory levels by 7%, stockouts by 31%, and inventory variability by 9%.
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supply chain learning and spillovers in vendor managed inventory
Decision Sciences, 2012Co-Authors: Yuliang Oliver Yao, Yan Dong, Martin DresnerAbstract:Despite extensive literature on the value of supply chain collaboration programs, little research has examined the issue from the perspective of organizational learning. Using a unique, operational level dataset, we empirically examine the learning curves through which performance improvements are realized under vendor managed inventory (VMI). Performance is measured at the downstream distributor locations by examining inventory levels after controlling for customer service performance (stockouts). We identify and assess three sources of learning: a supply chain dyad's self-learning, learning spillovers from electronic data interchange (EDI), and learning spillovers from other supply chain dyads. We find that self-learning, learning spillovers from EDI, and learning spillovers from other supply chain dyads, all have positive and significant impacts on a distributor's inventory performance. In addition, we find that self-learning may exhibit a U-shaped learning curve (i.e., performance first improves and then plateaus or declines). These findings suggest that the various learning experiences with VMI and EDI can lead to improved performance over time, but the path to improvement may be complex.
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the inventory value of information sharing continuous replenishment and vendor managed inventory
Transportation Research Part E-logistics and Transportation Review, 2008Co-Authors: Martin DresnerAbstract:In this paper, we extend the models in the literature [Lee, H.L., So, K.C., Tang, C., 2000. The value of information sharing in a two-level supply chain. Management Science 46 (5), 626-643; Raghunathan, S., Yeh, A.B., 2001. Beyond EDI: impact of continuous replenishment program (CRP) between a manufacturer and its retailers. Information Systems Research 12 (4), 406-419] to analyze the benefits realized for manufacturers and retailers under information sharing (IS), continuous replenishment programs (CRP) or vendor managed inventory (VMI) and compare the distribution of benefits between manufacturers and retailers. Our analysis shows that IS, CRP, and VMI bring varying benefits in terms of inventory cost savings to firms, and that the benefits are not consistently distributed between retailers and manufacturers. Our findings also point to the managerial implications on how managers may decide the product sets and replenishment frequency for improved benefit realization under CRP and VMI.
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the inventory value of information sharing continuous replenishment and vendor managed inventory
Transportation Research Part E-logistics and Transportation Review, 2008Co-Authors: Yuliang Yao, Martin DresnerAbstract:In this paper, we extend the models in the literature [Lee, H.L., So, K.C., Tang, C., 2000. The value of information sharing in a two-level supply chain. Management Science 46 (5), 626-643; Raghunathan, S., Yeh, A.B., 2001. Beyond EDI: impact of continuous replenishment program (CRP) between a manufacturer and its retailers. Information Systems Research 12 (4), 406-419] to analyze the benefits realized for manufacturers and retailers under information sharing (IS), continuous replenishment programs (CRP) or vendor managed inventory (VMI) and compare the distribution of benefits between manufacturers and retailers. Our analysis shows that IS, CRP, and VMI bring varying benefits in terms of inventory cost savings to firms, and that the benefits are not consistently distributed between retailers and manufacturers. Our findings also point to the managerial implications on how managers may decide the product sets and replenishment frequency for improved benefit realization under CRP and VMI.
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analyzing information enabled stockout management under vendor managed inventory
Information Technology & Management, 2007Co-Authors: Yuliang Yao, Yan Dong, Martin DresnerAbstract:We develop a mechanism under vendor-managed inventory (VMI) by which a manufacturer provides an incentive contract to a retailer to convert lost sales stockouts into backorders. An incentive contract is required since the retailer's efforts are not directly observable. We first show that when there are no limits on order quantities or inventory levels imposed on the manufacturer, the manufacturer will push inventory onto the retailer. The manufacturer minimizes the possibility for lost sales stockouts by maintaining high inventory levels at the retailer rather than by paying incentives to the retailer. However, modern information systems (IS), such as radio frequency identification (RFID), allow the retailer to monitor inventory at its premises and to enforce limits on order quantities. With strict limits on order quantities, the manufacturer will provide incentives to the retailer to convert lost sales stockouts to backorders. We analyze the conditions under which these incentive payments are likely to be highest.
Ashis Kumar Chatterjee - One of the best experts on this subject based on the ideXlab platform.
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vendor managed inventory for single vendor multi retailer supply chains
Decision Support Systems, 2015Co-Authors: Arqum Mateen, Ashis Kumar ChatterjeeAbstract:vendor managed inventory (VMI) as a supply chain coordination mechanism has been gaining a lot of attention. This paper develops analytical models for various approaches through which a single vendor-multiple retailer system may be coordinated through VMI. Through detailed analysis of the parameters involved, we discuss the conditions under which each of these approaches may be preferred. We also highlight the savings that can be derived in the transportation cost in a VMI setting. Different ways of structuring the replenishment policy under VMI have been considered.Models have been developed to exploit different cost trade-offs in the supply chain.Significant cost reduction is possible across different policies.Implications of adopting different models have been analyzed.
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a vendor managed inventory scheme as a supply chain coordination mechanism
International Journal of Production Research, 2015Co-Authors: Abhishek Chakraborty, Ashis Kumar Chatterjee, Arqum MateenAbstract:In this paper, we have considered a vendor-managed inventory (VMI) arrangement in a supply chain (SC), where the buyer imposes a penalty for shipments exceeding an upper limit. We have shown as how the industry practice of VMI under penalty can be used as a SC coordination mechanism. The vendor can influence the buyer to increase the batch size without making the buyer worse off. We also discuss how such a penalty scheme may be derived. Further, we have established the equivalence of VMI under deterministic demand with that of quantity discount models, thus highlighting the need to incorporate both cooperation and coordination perspectives while analysing SC collaboration mechanisms.
Mohammad M. Aldurgam - One of the best experts on this subject based on the ideXlab platform.
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Consignment and vendor managed inventory in single-vendor multiple buyers supply chains
International Journal of Production Research, 2013Co-Authors: Mohamed Ben-daya, Elkafi Hassini, Moncer Hariga, Mohammad M. AldurgamAbstract:In this paper we model a consignment (CS) and vendor-managed inventory (VMI) policy for a single vendor and multiple buyers supply chain with known demand. We study three vendor–buyers partnerships: (i) the vendor and the buyers act independently, (ii) the vendor enters in a vendor-managed inventory consignment (VMI&CS) partnership with the buyers and (iii) the vendor and the buyer belong to a vertically integrated firm where a single decision maker decides about the ordering policies. We use relationships (i) and (ii) to study the benefits of the VMI&CS agreement. We provide analytical and numerical results. We find that such an agreement is more beneficial when the vendor has a flexible capacity. It is also more attractive to buyers when they have significant order costs and the vendor's setup cost is not large. Finally we find that under VMI&CS the vendor will tend to make more frequent shipments with smaller lots.
Arqum Mateen - One of the best experts on this subject based on the ideXlab platform.
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vendor managed inventory for single vendor multi retailer supply chains
Decision Support Systems, 2015Co-Authors: Arqum Mateen, Ashis Kumar ChatterjeeAbstract:vendor managed inventory (VMI) as a supply chain coordination mechanism has been gaining a lot of attention. This paper develops analytical models for various approaches through which a single vendor-multiple retailer system may be coordinated through VMI. Through detailed analysis of the parameters involved, we discuss the conditions under which each of these approaches may be preferred. We also highlight the savings that can be derived in the transportation cost in a VMI setting. Different ways of structuring the replenishment policy under VMI have been considered.Models have been developed to exploit different cost trade-offs in the supply chain.Significant cost reduction is possible across different policies.Implications of adopting different models have been analyzed.
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a vendor managed inventory scheme as a supply chain coordination mechanism
International Journal of Production Research, 2015Co-Authors: Abhishek Chakraborty, Ashis Kumar Chatterjee, Arqum MateenAbstract:In this paper, we have considered a vendor-managed inventory (VMI) arrangement in a supply chain (SC), where the buyer imposes a penalty for shipments exceeding an upper limit. We have shown as how the industry practice of VMI under penalty can be used as a SC coordination mechanism. The vendor can influence the buyer to increase the batch size without making the buyer worse off. We also discuss how such a penalty scheme may be derived. Further, we have established the equivalence of VMI under deterministic demand with that of quantity discount models, thus highlighting the need to incorporate both cooperation and coordination perspectives while analysing SC collaboration mechanisms.
O. M. Odah - One of the best experts on this subject based on the ideXlab platform.
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vendor managed inventory model for single-vendor multi-retailer supply chains
European Journal of Operational Research, 2010Co-Authors: Mohammed A. Darwish, O. M. OdahAbstract:vendor managed inventory is an integrated approach for retailer-vendor coordination, according to which the vendor decides on the appropriate inventory levels within bounds that are agreed upon in a contractual agreement between vendor and retailers. In this contract, the vendor usually incurs a penalty cost for items exceeding these bounds. The purpose of this paper is to develop a model for a supply chain with single vendor and multiple retailers under VMI mode of operation. This model explicitly includes the VMI contractual agreement between the vendor and retailers. The developed model can easily describe supply chains with capacity constraints by selecting high penalty cost. Theorems are established to alleviate the complexity of the model and render the mathematics tractable. Moreover, an efficient algorithm is devised to find the global optimal solution. This algorithm reduces the computational efforts significantly. In addition, numerical experiments are conducted to show the utility of the proposed model.
