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A multi-attribute value theory to assess the benefits of vendor managed inventory

Author

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  • Camillo Loro
  • Riccardo Mangiaracina

Abstract

This paper aims to show the effect of the qualitative decision factors on the implementation of VMI solution in the grocery industry. The methodology used in the study is a combination of an analytical approach and empirical analysis. A multi-attribute value theory called simple multi-attribute rating theory was selected as a tool of analysis. This model was combined with the analytical hierarchical process to obtain a hybrid model to express subjective and objective decision-maker evaluations. Then, the empirical analysis was conducted to validate the research paradigm and to test the model generated. As a result, qualitative factors are considered essential elements for a supply chain collaboration project's success. For the literature, it is the first attempt to assess an analytical model combining both qualitative and quantitative factors for such a solution. For practitioners, the model may be used as a supporting tool for decision-making about VMI solution.

Suggested Citation

  • Camillo Loro & Riccardo Mangiaracina, 2021. "A multi-attribute value theory to assess the benefits of vendor managed inventory," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 14(3), pages 330-362.
    • Handle: RePEc:ids:ijisma:v:14:y:2021:i:3:p:330-362
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