Supply chain integration in vendor-managed inventory

Supply chain integration in vendor-managed inventory

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Article ID: iaor20082872
Country: Netherlands
Volume: 43
Issue: 2
Start Page Number: 663
End Page Number: 674
Publication Date: Mar 2007
Journal: Decision Support Systems
Authors: , ,
Keywords: supply & supply chains
Abstract:

This paper develops an analytical model that explores how important supply chain parameters affect the cost savings to be realized from collaborative initiatives such as vendor-managed inventory. Results from the model show that benefits, in the form of inventory cost reductions, may be generated from integration depending upon the ratio of the order costs of the supplier to the buyer and the ratio of the carrying charges of the supplier to the buyer. Results also show that these benefits are disproportionally distributed between buyers and suppliers.

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