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

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

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Article ID: iaor200914937
Country: Germany
Volume: 31
Issue: 1
Start Page Number: 167
End Page Number: 194
Publication Date: Jan 2009
Journal: OR Spectrum
Authors: , , ,
Keywords: inventory
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.

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