Vendor-Managed Inventory (Vmi)
Subject:
Name:
College:
Chapter 2: Literature review
2.1 Introduction The literature review will examine the most important concepts and the approach that will be most dominant in this study. In this study, we will look at the supply chain and its performance (Axsater, 1996). It will also consider benchmarking for supply chain and also the manner in which changes could be conducted to make credible improvements. The issues affecting the Vendor-Managed Inventory will be looked at from the perspective of a supplier. In this literature review there will be four interconnected themes which will cover the reasons for VMI adoption, the barriers that affect implementation of VMI, the guidelines and the models that are used for the VMI implementation and the emerging issues. This review will first discuss the main reasons for VMI adaptation in supply chain management, which will include the definitions and developments, the advancement of the VMI in supply chain, advantages of the VMI and the supply chain management in relation to VMI. Then this review will focus on the barriers or limitations during the implementation of the VMI.
This review will aim at explaining the issues that attract the supplier to the use of the VMI model for instance its relationship to the reduction of costs. The VMI has a big bearing on the cost of administration, cost of transport, cost of inventory, the service level of provision and the production of products. Also, in focus will be the limitations for these research for example the information technology that is required, the relationship of the customer supplier, the responsibilities of the supplier and the challenges this model faces in small entrepreneurship in comparison to bigger businesses. The guidelines that are responsible for the VMI will be another are of focus in the literature review there are quite a number of issues and steps that are followed in the implementation of this process. These steps may
Name:
College:
Chapter 2: Literature review
2.1 Introduction The literature review will examine the most important concepts and the approach that will be most dominant in this study. In this study, we will look at the supply chain and its performance (Axsater, 1996). It will also consider benchmarking for supply chain and also the manner in which changes could be conducted to make credible improvements. The issues affecting the Vendor-Managed Inventory will be looked at from the perspective of a supplier. In this literature review there will be four interconnected themes which will cover the reasons for VMI adoption, the barriers that affect implementation of VMI, the guidelines and the models that are used for the VMI implementation and the emerging issues. This review will first discuss the main reasons for VMI adaptation in supply chain management, which will include the definitions and developments, the advancement of the VMI in supply chain, advantages of the VMI and the supply chain management in relation to VMI. Then this review will focus on the barriers or limitations during the implementation of the VMI.
This review will aim at explaining the issues that attract the supplier to the use of the VMI model for instance its relationship to the reduction of costs. The VMI has a big bearing on the cost of administration, cost of transport, cost of inventory, the service level of provision and the production of products. Also, in focus will be the limitations for these research for example the information technology that is required, the relationship of the customer supplier, the responsibilities of the supplier and the challenges this model faces in small entrepreneurship in comparison to bigger businesses. The guidelines that are responsible for the VMI will be another are of focus in the literature review there are quite a number of issues and steps that are followed in the implementation of this process. These steps may
References: Andel, T. (1996). Manage inventory, own information. Transportation and Distribution. 37 (5), 54–58. Anupindi, R. & Akella, R.(1993). Diversification under supply uncertainty. Management Science. 39 (8), 944–963. Axsater, S.(1996). Using the deterministic EOQ formula in stochastic inventory control. Management Science. 42(6), 830–834. Banerjee, A. (1986). A joint economic lot size model for purchaser and vendor. Decision Sciences. 17, 292–311. Benefield, D. (1987). Consignment: what the hospital CFO should know. Hospital Material Management Quarterly. 8 (4), 29–37. Burke, M. (1996). It’s time for vendor managed inventory. Industrial Distribution 85 (2), 90. Chen, F., Drezner, Z., Ryan, J. & Simchi-Levi, D. (2000). Quantifying the bullwhip effect in a simple supply chain: the impact of forecasting, lead times and information. Management Science. 46 (3), 436–443. Copacino, W.C. (1993). Logistics strategy: how to get with the program. Traffic Management. 32 (8), 23–24. Cottrill, K. (1997). Reforging the supply chain. Journal of Business Strategy. 18 (6), 35–39. Cross, G.J. (1993). Continuous replenishment planning: an untapped gold mine. Transportation and Distribution. 34 (12), 49. Fagel, A.J. (1996). Selling on consignment: another tool in the credit arsenal. Business Credit. 98 (9), 6–8. Gamble, R.H. (1994). Curse of consignment sales: carrying customers’ inventory weighs down cash flow. Corporate Cash Flow 15 (10), 30–32. Gerber, N. (1991). Objective comparisons of consignment, just-in-time, and stockless. Hospital Material Management Quarterly. 13 (1), 10–17. Harrington, L. (1996). Consignment selling: trend or Another wild idea. Transportation and Distribution. 37 (6), 45–48. Hughes, A.M. (1996). How Panduit did it. American Demographics., 4–7. Hung, J., Fun, Y. & Li, C., (1995). Inventory management in consignment System. Production and Inventory Management Journal. 36 (4), 1–5. Joglekar, P.N. (1988). Comments on ‘a quantity discount pricing model to increase vendor profits’. Management Science. 34 (110), 1391–1398. Kohli, R., Park, H., (1994). Coordinating buyer-seller transactions across multiple products. Management Science 40 (9), 45–50. Lamb, M.R. (1997). Vendor managed inventory: customers like the possibilities. Metal Center News 37 (2), 42–49. Lee, H. & Rosenblatt, M., (1986). A generalized quantity discount pricing model to increase supplier profits. Management Science. 32(9), 1177–1185. Lee, H., Padmanabhan, P. & Whang, S., (1997). Information distortion in a supply chain: the bullwhip effect. Management Science. 43 (4), 546–558. Lowe, T. & Schwarz, L.B., (1983). Parameter estimation for the EOQ lot-size model: minmax and expected value choices. Naval Research Logistics. 30, 367–376. Nolan, K. (1997). For Marmon/Keystone, VMI offers real procurement solutions. Metal Center News. 37 (2), 50–60. Nolan, K. (1998). With distributors in mind, Northwestern embraces VMI. Metal Center News 38 (3), 32–36. Sahay, B.S. and Mohan R. (2003). Supply chain management practices in Indian industry. International Journal of Physical Distribution & Logistics Management, 33 (7), p.582-606. Sarantakos, S Schenck, J. & McInerney, J. (1998). Applying vendor-managed inventory to the apparel industry. Automatic I.D. News 14 (6), 36–38. Scott, C. and Westbrook, R. (1991). New strategic tools for supply chain management. International Jornal of Physical Distribution & Logistics Management, 21 (1), p.23-33. Seale, C Shepherd, C. and Gunter, H. (2006). Measuring supply chain performance: current research and future directions. International journal of Productivity and Performance Management, 55 (3/4), p.242-258. Silverman, D Silverman, D. (2000). Doing Qualitative Research: A Practical Hand Book. London: Sage Publication. Silverman, D Simatupang, T.M. and Sridharan, R. (2005). The collaboration index: a measure for supply chain collaboration. International Journal of Physical Distribution and Logistics Management, 35 (1), p.44-62. Sink, D.S Slack, N., Chambers, S. and Johnston, R. (2001). Operations Management. 3rd ed. Eaglewood cliff, NJ: Prentice Hall. Slack, N., Chambers, S., Harland, C., Harrison, A Speed, K. (1998). Finding ways to earn business. Industrial Distribution 87 (3), S6–S8. Spekman, R.E., Kamauff, J.W. Jr. and Myhr, N. (1998). An empirical investigation into supply chain management: a perspective on partnerships. International Journal of Physical Distribution & Logistics Management, 28 (8), p.630-650. Stake, R.E Stake, R.E. (2008). Qualitative Case Studies. IN: Denzin, N.K. and Lincoln, Y.S. (eds.) Strategies of Qualitative Inquiry. 3rd ed. London: Sage Publications, pp.119-150. Stenbacka, C Stewart, G. (1995). Supply chain performance benchmarking study reveals keys to supply chain excellence. Logistics Information Management, 8 (2), p.38-44. Tan, K.C., Handfield, R.B Thomas, D. & Griffin, P.M., (1996). Coordinated supply chain management. European Journal of Operational Research. 94, 1–15. Waller, M., Johnson, M.E Weng, Z.K., (1995). Channel coordination and quantity discount. Management Science 41 (9), 1509–1522. Xu, K., Dong, Y., Evers, P.T., (2001). Towards better coordination of the supply chain. Transportation Research Part E: Logistics and Transportation Review 37 (1), 35–54.