IDEAS home Printed from https://ideas.repec.org/a/ids/ijbsre/v7y2013i2p168-179.html
   My bibliography  Save this article

Numerical simulation-based investigation on vendor managed inventory model

Author

Listed:
  • T. Narendiranath Babu
  • D. Sujatha
  • D. Rama Prabha

Abstract

In a vendor managed inventory system, vendor or supplier is given the responsibilities of managing the customer's stock. The fundamental change is that the ordering phase of the process is saved, and the supplier is handed the authority and responsibility to take care of the entire replenishment process. This integrates operations between suppliers and buyers through information sharing and business process reengineering. This paper investigates the implementations of vendor managed inventory systems in a consumer goods industry. Once the data were setup in a spread sheet, two axis graphs were used for policy comparison. The case that is described in this paper is that of a fruit juice manufacturing firm located in India. The firm purchases over 100 items, such as packaging materials. The contribution of the packaging materials in the total inventory value is 83%, out of which 20% have a higher unit cost and a longer lead time. Therefore, a proper policy to manage the inventory of the packaging items is required.

Suggested Citation

  • T. Narendiranath Babu & D. Sujatha & D. Rama Prabha, 2013. "Numerical simulation-based investigation on vendor managed inventory model," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 7(2), pages 168-179.
  • Handle: RePEc:ids:ijbsre:v:7:y:2013:i:2:p:168-179
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=53759
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    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:ids:ijbsre:v:7:y:2013:i:2:p:168-179. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmel O'Grady). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=206 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.