An Exploratory Study on the Slow Adoption of Vendor managed Inventory in Manufacturing Firms

제조업체의 VMI 시스템 도입 부담요인에 관한 탐색적 연구

  • Received : 2015.07.20
  • Accepted : 2015.09.20
  • Published : 2015.09.28


Vendor Managed Inventory(VMI) is a distribution channel system where the inventory at the retailer is monitored and managed by the manufacturer or vendor. By pushing the decision making responsibility further up the supply chain and centralizing the replenishment decision, the vendor can help the entire supply chain be more competitive. The purpose of this research is to explore the factors influencing the adoption of VMI by Korean manufacturers. This research proposes the IT readiness, operating cost, and information sharing as antecedents of burden for VMI, and collected the survey responses from the small-to-medium manufacturers. The statistical results indicate that only the operating cost has a significant impact on the adoption of VMI. However it has also been found that the IT readiness and information sharing have a significant effect on the operating cost. Thus indirectly influence the adoption of VMI. As a conclusion, the academic and practical implications of these findings are discussed.


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