Effective Inventory Policy for VMI System at Discount Retailers

대형할인매장의 VMI 시스템을 위한 효율적인 재고관리시스템

This paper refers to the flow of products from supplier to discount retailers(DRs). Discount retailers prefer frequent delivery of small amount because of limited storage space, while suppliers prefer less frequent delivery of larger amount in order to save transportation cost. In this paper we propose a heuristic algorithm to determine the amount of order and the frequency of delivery which decreases the expected length of stockout. We also evaluate various order policies for Vendor Managed Inventory(VMI) system using simulation with real data.