An Analysis of VMI Application in a Two-echelon Supply Chain

碩士 === 國立東華大學 === 全球運籌管理研究所 === 94 === In order to improve the competitiveness of supply chain, companies should consider integrating their inventory systems. It could reduce stock and cost of the whole inventory. Therefore, the profit of the supply chain will be increased. Therefore, Vendor managed...

Full description

Bibliographic Details
Main Authors: Ya-Ting Yang, 楊雅婷
Other Authors: Yu-Wen Huang
Format: Others
Language:zh-TW
Published: 2006
Online Access:http://ndltd.ncl.edu.tw/handle/21974818186932270811
Description
Summary:碩士 === 國立東華大學 === 全球運籌管理研究所 === 94 === In order to improve the competitiveness of supply chain, companies should consider integrating their inventory systems. It could reduce stock and cost of the whole inventory. Therefore, the profit of the supply chain will be increased. Therefore, Vendor managed inventory (VMI) is one of the modern methods to manage inventory along supply chain. By using VMI, the overstock problem between members of supply chain can be solved efficiently. In our research, we consider a single-product two-echelon supply chain contained a single supplier. Refer to the supply chain management model of Dong and Xu (2002), we consider VMI with taking the backorder situation into account, hence the retailer’s order lot size will be raised. The model of Dong and Xu was only considered that the retailer is the leader; however, we concern the driving power between supplier and retailer is balanced in our research. On aspect of profit, we analyze the influence on inventory cost after using VMI with appropriated system parameters and the differences and the similarities between our results and Dong and Xu’s. Based on cases, our analysis shows that it is beneficial to use VMI under the following situation: the supplier’s setup cost is greater than the retailer’s ordering cost, or the retailer’s holding cost is less than its backordering cost, or the product value is less expensive, or the size of manufacturing batch. However, the profit of supplier will be decreased after applying VMI.