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VMI for Supply Chains under Demand Expansion Effects

Author

Listed:
  • Arqum Mateen

    (Indian Institute of Management Kozhikode)

  • Ashis K. Chatterjee

    (Indian Institute of Management Calcutta)

Abstract

This paper presents a vendor managed inventory (VMI) model for a system with a single vendor responsible for replenishing multiple retailers who face price-dependent demand. In order to boost the demand, the vendor does some advertisement expenditure, while the retailers make sales and marketing effort. A solution procedure is developed in order to determine the game equilibrium. A numerical study is also conducted to understand the influence of various parameters on the performance of different SC members. Results demonstrate that market related parameters have a significant effect on profits. Managerial insights emanating from the study have also been discussed.

Suggested Citation

  • Arqum Mateen & Ashis K. Chatterjee, 2017. "VMI for Supply Chains under Demand Expansion Effects," Working papers 231, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:231
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    File URL: https://iimk.ac.in/websiteadmin/FacultyPublications/Working%20Papers/231abs.pdf?t=29
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