• Journal of the Korean Operations Research and Management Science Society
• /
• v.29 no.3
• /
• pp.63-78
• /
• 2004

This paper deals with a supplier-managed inventory(SMI) control for a two-echelon supply chain model with a service facility and a single supplier. The service facility is allocated to customers and provides a service using items of inventory that are purchased from the supplier, Assuming that the supplier knows the information of customer queue length as well as inventory position in the service facility at the time when it makes a replenishment decision, we identify an optimal replenishment policy which minimizes the total supply chain costs by reflecting these information into the replenishment decision. Numerical analysis demonstrates that the SMI strategy can be more cost-effective when the information of both customer queue length and inventory position is shared than when the information of inventory position only is shared.

• Journal of Korean Institute of Industrial Engineers
• /
• v.32 no.4
• /
• pp.382-392
• /
• 2006

Vendor-managed inventory policy(VMIP) is a supply-chain initiative where the supplier is authorized to manage inventories of items at retail locations. In VMIP, the supplier monitors sales and stock information at retail locations and makes decisions of inventory replenishment and transportation simultaneously. VMIP has been known as an effective supply chain strategy that can realize many of benefits obtainable only in a fully integrated supply chain. However, VMIP does not always lead to lower the supply chain cost. It sometimes generates the total supply chain cost higher than the traditional retailer-managed inventory policy (RMIP). In this paper, we perform a comparison study on RMIP and VMIP in the retail supply chain which consists of a single supplier and a number of retailers. We formulate mixed integer programming models for both RMIP and VMIP with vehicle routing problems and perform computational experiments on various test problems. Furthermore, we derive the conditions which guarantee the dominant position for VMIP with respect to total supply chain cost in the simple retail supply chain.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.9 no.2
• /
• pp.556-563
• /
• 2008

One of the most important issues of managing a supply chain is to determine the inventory level whenever shortage is permitted and vendor is responsible fur management of the both buyer and supplier's inventory. We present two vendor managed inventory models in the form of two-echelon supply chain models for: 1) one buyer-one supplier problem, and 2) two buyers- one supplier problem. We assume that shortage is permitted. The proposed methods of this paper provides a simple condition, which makes it easy to decide when and how vendor managed inventory model costs less than traditional one. The paper is supported with some numerical examples to show the implementation of the proposed methods.

• Journal of the Korea Safety Management & Science
• /
• v.7 no.4
• /
• pp.179-191
• /
• 2005

Recently, Vendor Managed Inventory(VMI) has been commonly recognized as one of the supply chain application that delivers clear value to the sectors of electic & electronic components. VMI is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. VMI is providing the benefits of smoother demand, lower inventories(work in process, safety stock) and reduced costs. This study focused on improvement of safety level inventory efficiency by VMI. The results indicated that VMI allowed the company to serve its customers more surely and efficiently.

• Proceedings of the CALSEC Conference
• /
• 1998.10a
• /
• pp.247-254
• /
• 1998

국내/외 제조업체 또는 유통업체가 경쟁력 있는 제품의 생산/판매를 위해 최적의 부품 및 제품을 최단 시간내, 최저 가격으로 조달하기 위한 Global sourcing체계 구축과 그에 따른 재고부담을 회피하면서 제품을 소비자에게 신속히 전달하려는 공급선관리 (Supply Chain Management : SCM)의 의지가 높아지고 있다. 이에 따라 제조업체나 유통업체가 자체 재고 및 관리부담을 감소시키기 위해 JIT(Just In Time)체계의 업무형태를 도입하고 있고 부품 및 제품을 공급하는 공급자에게 제조업체의 재고를 관리하게 하는 형태인 이른바 공급자 재고관리(Supplier Managed Inventory： SMI)가 공급업체에게 요구되고 있다. 또한 최근 국내 제조업의 생산기반이 급속히 해외이전 됨에 따라 해리 생산거점과 국내본사, 주문자에 이르는 전 과정에 걸친 물류 및 정보전달 체계를 확보해야 하는 상황에서 공급업체는 주문업체로부터 주문한 내용의 진행상황과 자동적인 재고의 판단 및 보충에 이르는 전 과정의 프로세스 관리 및 관련 정보제공을 요구 받고있다. 이와 같은 환경에 대응하기 위해 본 발표에는 공급자 재고관리의 정의 및 Global business 환경에서 EDI를 통한 System의 구축방안 및 고려사항을 제시하고자 한다.

• Journal of Korean Institute of Industrial Engineers
• /
• v.34 no.4
• /
• pp.425-432
• /
• 2008

While the Vendor-Managed Inventory(VMI) is a convenient inventory replenishment policy for the customer company, the supplier usually bears the burden of higher inventory and urgent shipments to avoid shortage. Recently some manufacturers begin to fix the production schedule for the next few days (such as three days). Utilizing that information can improve the efficiency of the VMI. In this study, we present a myopic optimization model using a mixed inter programming; and a heuristics algorithm. We compare the performance of the two proposed methods with the existing (s, S) reorder policy. We consider the total cost as the sum of transportation cost and inventory cost at the customer's site. Numerical tests indicate that the two proposed methods significantly reduce the total cost over the (s, S) policy.

• The Journal of Industrial Distribution & Business
• /
• v.14 no.9
• /
• pp.21-30
• /
• 2023

Purpose: Focusing on the role of the special contract to collaborate the supply chain operations, this study investigates how the revenue sharing contract affects the performance of Vendor Managed Inventory (VMI). Research design, data, and methodology: The optimization model is formulated to represent two stage supply chain system where the supplier and retailer manage the operations to maximize their own profits. Three supply chain models including the traditional system, VMI, and VMI with revenue sharing contract are compared in the numerical examples. Results: According to the numerical analysis, the entire supply chain system has greater profit under VMI than the traditional system, while VMI alone sacrifices the supplier's profit. With the proper sets of revenue share ratio and wholesale price discount rate, VMI with revenue sharing contract results in the increased profit for both supplier and retailer compared with VMI alone as well as the traditional system. Conclusions: The numerical examples imply that VMI, when it is combined with the revenue sharing contract, can be the effective collaboration program that satisfies every supply chain member. To make VMI with revenue sharing contract to be fair to all supply chain members, they need to agree on the appropriate contract content.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.25 no.4
• /
• pp.16-21
• /
• 2002

This paper refer to the trade-off between delivery frequency and amount between supplier and discountstores. Discountstores prefer frequent delivery of small amount because of limited storage space, while suppliers prefer less frequent delivery of large amount in order to save transportation cost In this paper we propose a heuristic algorithm to determine the amount of order and the delivery frequency which decreases the expected length of stockout. We also evaluate various order policies for vendor managed inventory system using simulation with real data.

• Journal of Digital Contents Society
• /
• v.9 no.2
• /
• pp.295-303
• /
• 2008

With universality of e-commerce through internet, smaller online shopping malls are increased. A Smaller online shopping mall by nature lacks an extra space to load many inventory quantities. Therefore, it is difficult to response immediately with client request with traditional inventory management method. VMI has a character that supplier can control volume of inventory according to sales of seller. This paper proposes SOHO-VMI that is applied VMI into smaller online shopping mall. Proposed SOHO-VMI supports M $\times$ N structure can interact with multiple suppliers and sellers. And it uses XML/EDI for interaction with EDI documents use to legacy system. Also, This paper proposes logistics statistic prediction algorithm can adjust production and distribution volumes to supplier considering seller's product distribution information and seasonal factor.

• IE interfaces
• /
• v.13 no.3
• /
• pp.431-437
• /
• 2000

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.