Effectiveness of vendor managed inventory approach in a two-stage supply chain when demand rates are static
- Author
- Mohd Kamarul Irwan Abdul Rahim (UGent) and El-Houssaine Aghezzaf (UGent)
- Organization
- Abstract
- Vendor Managed Inventory (VMI) is an effective policy of integration between the different stages in a supply chain system. In VMI, the supplier takes the responsibility of maintaining inventory at its retailers and ensuring that they will not run out of stock at any moment. The aim of this paper is to optimize the inventory holding costs and the transportation costs of the retailers within the same set partition and/or combining the retailers in the different set partitions, for a two-stage supply chain. The problem is to determine the delivery quantities as well as the times and routes to the retailers, while ensuring feasibility regardless of the realized demands, and minimizing the total cost composed of distribution and inventory holding costs. In the proposed approach, retailers are first clustered to determine the possible retailers set partitions and are then replenished using an optimal routing strategy satisfying some additional restrictions. The improvement of the system’s performance is shown and discussed in the comparative analysis section.
- Keywords
- LOCATION, MODEL, Supply Chain Optimization, Static Demand, Vendor Managed Inventory, RISK
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Citation
Please use this url to cite or link to this publication: http://hdl.handle.net/1854/LU-5907816
- MLA
- Abdul Rahim, Mohd Kamarul Irwan, and El-Houssaine Aghezzaf. “Effectiveness of Vendor Managed Inventory Approach in a Two-Stage Supply Chain When Demand Rates Are Static.” AIP Conference Proceedings, edited by Theodore E Simos and Charalambos Tsitouras, vol. 1648, AIP Publishing, 2015, pp. 1–4, doi:10.1063/1.4913155.
- APA
- Abdul Rahim, M. K. I., & Aghezzaf, E.-H. (2015). Effectiveness of vendor managed inventory approach in a two-stage supply chain when demand rates are static. In T. E. Simos & C. Tsitouras (Eds.), AIP Conference Proceedings (Vol. 1648, pp. 1–4). https://doi.org/10.1063/1.4913155
- Chicago author-date
- Abdul Rahim, Mohd Kamarul Irwan, and El-Houssaine Aghezzaf. 2015. “Effectiveness of Vendor Managed Inventory Approach in a Two-Stage Supply Chain When Demand Rates Are Static.” In AIP Conference Proceedings, edited by Theodore E Simos and Charalambos Tsitouras, 1648:1–4. AIP Publishing. https://doi.org/10.1063/1.4913155.
- Chicago author-date (all authors)
- Abdul Rahim, Mohd Kamarul Irwan, and El-Houssaine Aghezzaf. 2015. “Effectiveness of Vendor Managed Inventory Approach in a Two-Stage Supply Chain When Demand Rates Are Static.” In AIP Conference Proceedings, ed by. Theodore E Simos and Charalambos Tsitouras, 1648:1–4. AIP Publishing. doi:10.1063/1.4913155.
- Vancouver
- 1.Abdul Rahim MKI, Aghezzaf E-H. Effectiveness of vendor managed inventory approach in a two-stage supply chain when demand rates are static. In: Simos TE, Tsitouras C, editors. AIP Conference Proceedings. AIP Publishing; 2015. p. 1–4.
- IEEE
- [1]M. K. I. Abdul Rahim and E.-H. Aghezzaf, “Effectiveness of vendor managed inventory approach in a two-stage supply chain when demand rates are static,” in AIP Conference Proceedings, Rhodes, Greece, 2015, vol. 1648, pp. 1–4.
@inproceedings{5907816, abstract = {{Vendor Managed Inventory (VMI) is an effective policy of integration between the different stages in a supply chain system. In VMI, the supplier takes the responsibility of maintaining inventory at its retailers and ensuring that they will not run out of stock at any moment. The aim of this paper is to optimize the inventory holding costs and the transportation costs of the retailers within the same set partition and/or combining the retailers in the different set partitions, for a two-stage supply chain. The problem is to determine the delivery quantities as well as the times and routes to the retailers, while ensuring feasibility regardless of the realized demands, and minimizing the total cost composed of distribution and inventory holding costs. In the proposed approach, retailers are first clustered to determine the possible retailers set partitions and are then replenished using an optimal routing strategy satisfying some additional restrictions. The improvement of the system’s performance is shown and discussed in the comparative analysis section.}}, articleno = {{UNSP 850100}}, author = {{Abdul Rahim, Mohd Kamarul Irwan and Aghezzaf, El-Houssaine}}, booktitle = {{AIP Conference Proceedings}}, editor = {{Simos, Theodore E and Tsitouras, Charalambos}}, isbn = {{9780735412873}}, issn = {{0094-243X}}, keywords = {{LOCATION,MODEL,Supply Chain Optimization,Static Demand,Vendor Managed Inventory,RISK}}, language = {{eng}}, location = {{Rhodes, Greece}}, pages = {{UNSP 850100:1--UNSP 850100:4}}, publisher = {{AIP Publishing}}, title = {{Effectiveness of vendor managed inventory approach in a two-stage supply chain when demand rates are static}}, url = {{http://doi.org/10.1063/1.4913155}}, volume = {{1648}}, year = {{2015}}, }
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