IDEAS home Printed from https://ideas.repec.org/a/ids/ijisen/v34y2020i2p241-282.html
   My bibliography  Save this article

An inventory positioning model under vendor managed inventory system

Author

Listed:
  • Jayalal Wettasinghe
  • Huynh Trung Luong

Abstract

Inventory management is one of the key functions in any supply chain. Since inventory cost occupies a significant portion of supply chain cost, it is essential to employ a good inventory policy in order to reduce the supply chain cost while improving the service level. This paper presents a vendor managed inventory (VMI) policy with emergency orders for a supply chain with a single vendor and two independent retailers. A mathematical model is developed using the concept of demand rate, assuming Poisson demand for the retailers. The formulated model is used to help determine the optimal system base stock level, delivery quantities to retailers and the cycle length such that the total expected inventory cost of the system is minimised. Numerical experiments and sensitivity analysis are then conducted to examine the effect of model parameters on total inventory cost and optimal solution.

Suggested Citation

  • Jayalal Wettasinghe & Huynh Trung Luong, 2020. "An inventory positioning model under vendor managed inventory system," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 34(2), pages 241-282.
    • Handle: RePEc:ids:ijisen:v:34:y:2020:i:2:p:241-282
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=105293
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    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:ids:ijisen:v:34:y:2020:i:2:p:241-282. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=188 .

    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.