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Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system


Abdul Rahim, Mohd Kamarul Irwan and Aghezzaf, El-Houssaine and Limère, Veronique and Raa, Birger (2016) Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system. International Journal of Systems Science, 47 (8). pp. 1953-1965. ISSN 0020-7721

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Abstract

This paper considers a two-stage supply chain, consisting of a single warehouse and multiple retailers facing deterministic demands, under a vendor-managed inventory (VMI) policy.It presents a two-phase optimisation approach for coordinating the shipments in this VMI system.The first phase uses direct shipping from the supplier to all retailers to minimise the overall inventory costs.Then, in the second phase, the retailers are clustered using a construction heuristic in order to optimise the transportation costs while satisfying some additional restrictions.The improvement of the system's performance through coordinated VMI replenishments against the system with direct shipping only is shown and discussed in the comparative analysis section.

Item Type: Article
Uncontrolled Keywords: inventory control, VMI, supply chain optimisation, deterministic demand, inventory routing
Subjects: T Technology > TS Manufactures
Divisions: School of Technology Management & Logistics
Depositing User: Mr. Mohd Kamarul Irwan Abdul Rahim
Date Deposited: 07 Mar 2016 02:19
Last Modified: 12 Apr 2016 01:13
URI: http://repo.uum.edu.my/id/eprint/17440

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