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      An analysis of manufacturer benefits under vendor-managed systems

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      Author(s)
      Savaşaneril, S.
      Erkip, N.
      Date
      2010
      Source Title
      IIE Transactions
      Print ISSN
      0740-817X
      Electronic ISSN
      1545-8830
      Publisher
      Taylor & Francis
      Volume
      42
      Issue
      7
      Pages
      455 - 477
      Language
      English
      Type
      Article
      Item Usage Stats
      137
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      113
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      Abstract
      Vendor-Managed Inventory (VMI) has attracted a lot of attention due to its benefits such as fewer stock-outs, higher sales, and lower inventory levels at the retailers. Vendor-Managed Availability (VMA) is an improvement that exploits the advantages beyond VMI. This article analyzes the benefits beyond information sharing and assesses the motivation for the manufacturer (vendor) behind joining such a program. It is shown that such vendor-managed systems provide increased flexibility in manufacturer's operations and may bring additional benefits. An analysis is presented on how the system parameters affect the profitability and determine the conditions that make the vendor-managed system a viable strategy for the manufacturer.
      Keywords
      Vertical collaboration
      Vendor-managed inventory
      Capacity management
      Operational flexibility
      Consignment stock
      Permalink
      http://hdl.handle.net/11693/22283
      Published Version (Please cite this version)
      http://dx.doi.org/10.1080/07408170903459968
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      • Department of Industrial Engineering 702
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