IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v157y2014icp289-301.html
   My bibliography  Save this article

Vendor Managed Inventory (VMI) with Consignment Stock (CS) agreement for a two-level supply chain with an imperfect production process with/without restoration interruptions

Author

Listed:
  • Bazan, Ehab
  • Jaber, Mohamad Y.
  • Zanoni, Simone
  • Zavanella, Lucio E.

Abstract

A vendor managed system with the Consignment Stock agreement is a business practice where a buyer׳s inventory remains the property of the vendor until its withdrawal by the final customer demand. Such an agreement has shown to be a profitable stock management approach, especially when operating in uncertain environments where delivery lead times and/or market demand vary over time.

Suggested Citation

  • Bazan, Ehab & Jaber, Mohamad Y. & Zanoni, Simone & Zavanella, Lucio E., 2014. "Vendor Managed Inventory (VMI) with Consignment Stock (CS) agreement for a two-level supply chain with an imperfect production process with/without restoration interruptions," International Journal of Production Economics, Elsevier, vol. 157(C), pages 289-301.
    • Handle: RePEc:eee:proeco:v:157:y:2014:i:c:p:289-301
    DOI: 10.1016/j.ijpe.2014.02.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527314000590
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2014.02.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Khan, M. & Jaber, M.Y. & Wahab, M.I.M., 2010. "Economic order quantity model for items with imperfect quality with learning in inspection," International Journal of Production Economics, Elsevier, vol. 124(1), pages 87-96, March.
    2. Chen, Jen-Ming & Lin, I-Chen & Cheng, Hung-Liang, 2010. "Channel coordination under consignment and vendor-managed inventory in a distribution system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 831-843, November.
    3. Gümüs, Mehmet & Jewkes, Elizabeth M. & Bookbinder, James H., 2008. "Impact of consignment inventory and vendor-managed inventory for a two-party supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 502-517, June.
    4. Jaber, Mohamad Y. & Bonney, Maurice & Guiffrida, Alfred L., 2010. "Coordinating a three-level supply chain with learning-based continuous improvement," International Journal of Production Economics, Elsevier, vol. 127(1), pages 27-38, September.
    5. Glock, C. H., 2012. "The joint economic lot size problem: a review," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57811, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Glock, Christoph H., 2012. "The joint economic lot size problem: A review," International Journal of Production Economics, Elsevier, vol. 135(2), pages 671-686.
    7. Glock, C. H. & Kim, T., 2012. "A joint economic lot sizemodel with returnable transport items," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 59079, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Zanoni, Simone & Jaber, Mohamad Y. & Zavanella, Lucio E., 2012. "Vendor managed inventory (VMI) with consignment considering learning and forgetting effects," International Journal of Production Economics, Elsevier, vol. 140(2), pages 721-730.
    9. Valentini, Giovanni & Zavanella, Lucio, 2003. "The consignment stock of inventories: industrial case and performance analysis," International Journal of Production Economics, Elsevier, vol. 81(1), pages 215-224, January.
    10. Glock, C. H. & Jaber, M. Y. & El Saadany, A., 2013. "Supply Chain Coordination with Emission Reduction Incentives," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57672, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    11. Agnihothri, Saligrama R. & Kenett, Ron S., 1995. "The impact of defects on a process with rework," European Journal of Operational Research, Elsevier, vol. 80(2), pages 308-327, January.
    12. Ch. Srinivas & C.S.P. Rao, 2007. "Consignment stock policy with controllable lead time for effective inventory management in supply chains," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 10(2/3), pages 161-176.
    13. Khan, Mehmood & Jaber, Mohamad Y. & Bonney, Maurice, 2011. "An economic order quantity (EOQ) for items with imperfect quality and inspection errors," International Journal of Production Economics, Elsevier, vol. 133(1), pages 113-118, September.
    14. Evan L. Porteus, 1986. "Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction," Operations Research, INFORMS, vol. 34(1), pages 137-144, February.
    15. Hill, Roger M., 1997. "The single-vendor single-buyer integrated production-inventory model with a generalised policy," European Journal of Operational Research, Elsevier, vol. 97(3), pages 493-499, March.
    16. Holweg, Matthias & Disney, Stephen & Holmström, Jan & Småros, Johanna, 2005. "Supply Chain Collaboration:: Making Sense of the Strategy Continuum," European Management Journal, Elsevier, vol. 23(2), pages 170-181, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthias Klumpp & Dominic Loske, 2021. "Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    2. Hesham K. Alfares & Ahmed M. Attia, 2017. "A supply chain model with vendor-managed inventory, consignment, and quality inspection errors," International Journal of Production Research, Taylor & Francis Journals, vol. 55(19), pages 5706-5727, October.
    3. Yosef Daryanto & Hui Ming Wee & Gede Agus Widyadana, 2019. "Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items," Mathematics, MDPI, vol. 7(3), pages 1-24, March.
    4. Ágota Bányai & Tamás Bányai & Béla Illés, 2017. "Optimization of Consignment-Store-Based Supply Chain with Black Hole Algorithm," Complexity, Hindawi, vol. 2017, pages 1-12, September.
    5. S. Ganesan & R. Uthayakumar, 2023. "An EPQ model for a single-machine multiproduct imperfect production system using a hybrid logarithmic barrier method," OPSEARCH, Springer;Operational Research Society of India, vol. 60(3), pages 1121-1152, September.
    6. B. C. Giri & A. Chakraborty & T. Maiti, 2017. "Effectiveness of consignment stock policy in a three-level supply chain," Operational Research, Springer, vol. 17(1), pages 39-66, April.
    7. Li, Jin & Yang, Shilei & Shi, Victor & Zhai, Senjing, 2020. "Partial vertical centralization in competing supply chains," International Journal of Production Economics, Elsevier, vol. 224(C).
    8. Siraj K. Zahran & Mohamad Y. Jaber & Simone Zanoni, 2017. "Comparing different coordination scenarios in a three-level supply chain system," International Journal of Production Research, Taylor & Francis Journals, vol. 55(14), pages 4068-4088, July.
    9. Marchi, B. & Zanoni, S. & Zavanella, L.E. & Jaber, M.Y., 2019. "Supply chain models with greenhouse gases emissions, energy usage, imperfect process under different coordination decisions," International Journal of Production Economics, Elsevier, vol. 211(C), pages 145-153.
    10. Chan, Chi Kin & Fang, Fei & Langevin, André, 2018. "Single-vendor multi-buyer supply chain coordination with stochastic demand," International Journal of Production Economics, Elsevier, vol. 206(C), pages 110-133.
    11. Sobhani, A. & Wahab, M.I.M. & Jaber, M.Y., 2019. "The effect of working environment aspects on a vendor–buyer inventory model," International Journal of Production Economics, Elsevier, vol. 208(C), pages 171-183.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Braglia, Marcello & Castellano, Davide & Frosolini, Marco, 2014. "Safety stock management in single vendor–single buyer problem under VMI with consignment stock agreement," International Journal of Production Economics, Elsevier, vol. 154(C), pages 16-31.
    2. Jawad, Hussam & Jaber, Mohamad Y. & Nuwayhid, Rida Y., 2018. "Improving supply chain sustainability using exergy analysis," European Journal of Operational Research, Elsevier, vol. 269(1), pages 258-271.
    3. Hariga, Moncer & As’ad, Rami & Khan, Zeinab, 2017. "Manufacturing-remanufacturing policies for a centralized two stage supply chain under consignment stock partnership," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 362-374.
    4. Beck, Fabian G. & Glock, Christoph H. & Kim, Taebok, 2017. "Coordination of a production network with a single buyer and multiple vendors with geometrically increasing batch shipments," International Journal of Production Economics, Elsevier, vol. 193(C), pages 633-646.
    5. Wu, Kan & Yuan, Xue-Ming, 2016. "Optimal production-inventory policy for an integrated multi-stage supply chain with time-varying demandAuthor-Name: Zhao, Shi Tao," European Journal of Operational Research, Elsevier, vol. 255(2), pages 364-379.
    6. Mehmood Khan & Matloub Hussain & Leopoldo Eduardo Cárdenas-Barrón, 2017. "Learning and screening errors in an EPQ inventory model for supply chains with stochastic lead time demands," International Journal of Production Research, Taylor & Francis Journals, vol. 55(16), pages 4816-4832, August.
    7. Lee, W. & Wang, S.-P. & Chen, W.-C., 2017. "Forward and backward stocking policies for a two-level supply chain with consignment stock agreement and stock-dependent demand," European Journal of Operational Research, Elsevier, vol. 256(3), pages 830-840.
    8. Glock, Christoph H. & Grosse, Eric H., 2021. "The impact of controllable production rates on the performance of inventory systems: A systematic review of the literature," European Journal of Operational Research, Elsevier, vol. 288(3), pages 703-720.
    9. B.C. Giri & S. Sharma, 2014. "Lot sizing and unequal-sized shipment policy for an integrated production-inventory system," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(5), pages 888-901, May.
    10. Tarhini, Hussein & Karam, Mario & Jaber, Mohamad Y., 2020. "An integrated single-vendor multi-buyer production inventory model with transshipments between buyers," International Journal of Production Economics, Elsevier, vol. 225(C).
    11. Castellano, Davide & Gallo, Mosè & Grassi, Andrea & Santillo, Liberatina C., 2019. "The effect of GHG emissions on production, inventory replenishment and routing decisions in a single vendor-multiple buyers supply chain," International Journal of Production Economics, Elsevier, vol. 218(C), pages 30-42.
    12. Daryanto, Yosef & Wee, Hui Ming & Astanti, Ririn Diar, 2019. "Three-echelon supply chain model considering carbon emission and item deterioration," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 368-383.
    13. Sarker, Bhaba R., 2014. "Consignment stocking policy models for supply chain systems: A critical review and comparative perspectives," International Journal of Production Economics, Elsevier, vol. 155(C), pages 52-67.
    14. Ali Ekici & Baṣak Altan & Okan Örsan Özener, 2016. "Pricing decisions in a strategic single retailer/dual suppliers setting under order size constraints," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 1887-1898, April.
    15. AlDurgam, Mohammad & Adegbola, Kehinde & Glock, Christoph H., 2017. "A single-vendor single-manufacturer integrated inventory model with stochastic demand and variable production rate," International Journal of Production Economics, Elsevier, vol. 191(C), pages 335-350.
    16. Vahid Reza Soleymanfar & Ahmad Makui & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2022. "Sustainable EOQ and EPQ models for a two-echelon multi-product supply chain with return policy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5317-5343, April.
    17. Bazan, Ehab & Jaber, Mohamad Y. & Zanoni, Simone, 2017. "Carbon emissions and energy effects on a two-level manufacturer-retailer closed-loop supply chain model with remanufacturing subject to different coordination mechanisms," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 394-408.
    18. B. C. Giri & A. Chakraborty & T. Maiti, 2017. "Effectiveness of consignment stock policy in a three-level supply chain," Operational Research, Springer, vol. 17(1), pages 39-66, April.
    19. Asif Iqbal Malik & Biswajit Sarkar, 2020. "Coordination Supply Chain Management Under Flexible Manufacturing, Stochastic Leadtime Demand, and Mixture of Inventory," Mathematics, MDPI, vol. 8(6), pages 1-32, June.
    20. Lucio Enrico Zavanella & Beatrice Marchi & Simone Zanoni & Ivan Ferretti, 2019. "Energy considerations for the economic production quantity and the joint economic lot sizing," Journal of Business Economics, Springer, vol. 89(7), pages 845-865, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:157:y:2014:i:c:p:289-301. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.