A note on supply risk and inventory outsourcing

A note on supply risk and inventory outsourcing

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Article ID: iaor2007215
Country: United Kingdom
Volume: 17
Issue: 4
Start Page Number: 424
End Page Number: 437
Publication Date: Jun 2006
Journal: Production Planning & Control
Authors: ,
Keywords: supply & supply chains, retailing, inventory, risk
Abstract:

This paper is aimed at developing and testing a methodology to evaluate the most appropriate collaboration level within a given supply chain. In particular, the proposed methodology is conceived for logistic networks belonging to the consumer packaged goods industry, e.g. the grocery industry, and it consists of: (i) identifying an approximation of collaboration, (ii) representing through such approximation the different options among collaborative planning forecasting and replenishment (CPFR), vendor management inventory (VMI) and loosely collaborative approach (LCA); (iii) using a simulation-based decision support system to select the best collaboration level. The proposed methodology has been applied to a real-life supply chain in the food and beverage industry. Results conclude that the methodology proposed here proved useful in facing the problem of collaboration level definition among the nodes of a consumer packaged goods logistic network.

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