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Supplier managed inventory in the OEM supply chain: the impact of relationship types on total costs and cost distribution

In: Supply Chain Planning

Author

Listed:
  • P. L. M. Van Nyen

    (OM Partners)

  • J. W. M. Bertr

    (Faculty of Technology Management)

  • H. P. G. Van Ooijen

    (Faculty of Technology Management)

  • N. J. Vandaele

    (Katholieke Universiteit Leuven)

Abstract

We investigate the impact of four variants of supplier managed inventory on total costs and cost distribution in a capital goods supply chain consisting of a parts supplier who delivers parts to an original equipment manufacturer’s assembly plant. The four supplier managed inventory variants differ in the components of inventory costs that the supplier has to carry. The performance of the supplier managed inventory relationships is benchmarked with the situation where the assembly plant manages the inventories. Interesting managerial insights follow from this comparison.

Suggested Citation

  • P. L. M. Van Nyen & J. W. M. Bertr & H. P. G. Van Ooijen & N. J. Vandaele, 2009. "Supplier managed inventory in the OEM supply chain: the impact of relationship types on total costs and cost distribution," Springer Books, in: Herbert Meyr & Hans-Otto Günther (ed.), Supply Chain Planning, pages 219-246, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-93775-3_9
    DOI: 10.1007/978-3-540-93775-3_9
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