IDEAS home Printed from https://ideas.repec.org/a/bla/popmgt/v6y1997i3p266-276.html
   My bibliography  Save this article

Campbell Soup'S Continuous Replenishment Program: Evaluation And Enhanced Inventory Decision Rules

Author

Listed:
  • GfiRARD CACHON
  • MARSHALL FISHER

Abstract

Campbell Soup's continuous replenishment (CR) program is a novel innovation designed to improve the efficiency of inventory management throughout the supply chain. With CR (1) retailers pay a constant wholesale price but continue to participate in consumer promotions, (2) retailers transmit to the supplier daily inventory information via electronic data interchange (EDI), and (3) the supplier assumes responsibility for managing retailer inventories, i.e., vendor managed inventories (VMI). We develop simple inventory management rules to operate CR, and we test these rules with a simulation using actual demand data provided by Campbell Soup. On this sample we find that retailer inventories were reduced on average by 66% while maintaining or increasing average fill rates. This improvementreduces a retailer's cost of goods sold by 1.2%, which is significant in the low profitmargin grocery industry. Furthermore, these savings could have been achieved without VMI.

Suggested Citation

  • GfiRARD CACHON & MARSHALL FISHER, 1997. "Campbell Soup'S Continuous Replenishment Program: Evaluation And Enhanced Inventory Decision Rules," Production and Operations Management, Production and Operations Management Society, vol. 6(3), pages 266-276, September.
    • Handle: RePEc:bla:popmgt:v:6:y:1997:i:3:p:266-276
    DOI: 10.1111/j.1937-5956.1997.tb00430.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1937-5956.1997.tb00430.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1937-5956.1997.tb00430.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nalini Govindarajulu, 2006. "Application of Demand Chain Initiatives to Small Businesses:," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 15(1), pages 19-35, January.
    2. Ciancimino, Elena & Cannella, Salvatore & Canca Ortiz, José David & Framiñán Torres, José Manuel, 2009. "Análisis multinivel de cadenas de suministros: dos técnicas de resolución del efecto bullwhip // Supply Chain Multi-level Analysis: Two Bullwhip Dampening Approaches," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 8(1), pages 7-28, December.
    3. Roberto Dominguez & Salvatore Cannella & Borja Ponte & Jose M. Framinan, 2022. "Information sharing in decentralised supply chains with partial collaboration," Flexible Services and Manufacturing Journal, Springer, vol. 34(2), pages 263-292, June.
    4. Fawcett, Stanley E. & Magnan, Gregory M. & McCarter, Matthew W., 2005. "The Effect of People on the Supply Chain World: Some Overlooked Issues," Working Papers 05-0118, University of Illinois at Urbana-Champaign, College of Business.
    5. Baruah, Pundarikaksha, 2006. "Supply Chains Facing Atypical Demand: Optimal Operational Policies And Benefits Under Information Sharing," MPRA Paper 16101, University Library of Munich, Germany.
    6. Varun Karamshetty & Harwin De Vries & Luk N. Van Wassenhove & Sarah Dewilde & Warnyta Minnaard & Dennis Ongarora & Kennedy Abuga & Prashant Yadav, 2022. "Inventory Management Practices in Private Healthcare Facilities in Nairobi County," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 828-846, February.
    7. Emel Aktas & Yuwei Meng, 2017. "An Exploration of Big Data Practices in Retail Sector," Logistics, MDPI, vol. 1(2), pages 1-28, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:popmgt:v:6:y:1997:i:3:p:266-276. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1937-5956 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.