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Decision Support Systems
Volume 44, Issue 1, November 2007, Pages 360-365
 
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doi:10.1016/j.dss.2007.03.003    How to Cite or Link Using DOI (Opens New Window)
Copyright © 2007 Elsevier B.V. All rights reserved.

Note on supply chain integration in vendor-managed inventory

Piet van der VlistCorresponding Author Contact Information, a, E-mail The Corresponding Author, Roelof Kuika and Bas Verheijena

aRSM Erasmus University, Rotterdam, The Netherlands

Received 23 October 2006; 
accepted 12 March 2007. 
Available online 21 March 2007.

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Abstract

In a recent paper Yao et al. present a single-buyer-single-supplier model to explore the effects of collaborative supply-chain initiatives such as vendor managed inventory (VMI). Several conclusions drawn from their model are arguable as (i) the model ignores the costs of shipments from the supplier to the buyer and (ii) the model times the incoming and outgoing flows at the supplier in a manner that overstates the inventory needed at the supplier.

Keywords: Vendor managed inventory; Supply chain integration; Supply chain synchronization; Information sharing

Article Outline

1. Introduction
2. Extending the Yao-model with delivery cost
3. Case descriptions
3.1. No-VMI
3.1.1. Case 1 — No-VMI fixed unit price (Fup)
3.1.2. Case 2 — No-VMI service based pricing (Sbp)
3.2. VMI
3.2.1. Case 3 — VMI Yao+
3.2.2. Case 4 — VMI with unlinked timing of replenishment orders (Unl)
3.2.3. Case 5 — VMI synchronized (Syn)
4. Analyses
5. Comparisons
5.1. Costs rate
5.2. Shipment size supplier–buyer
5.3. Inventory at buyer
5.4. Inventory at supplier
6. Conclusion
References
Vitae



Decision Support Systems
Volume 44, Issue 1, November 2007, Pages 360-365
 
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