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Beyond EDI: Impact of Continuous Replenishment Program (CRP) Between a Manufacturer and Its Retailers

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  • Srinivasan Raghunathan

    (Management Science and Information Systems Department, School of Management, University of Texas at Dallas, Richardson, Texas 75083)

  • Arthur B. Yeh

    (Applied Statistics and Operations Research Department, Bowling Green State University, Bowling Green, Ohio 43403)

Abstract

Electronic data interchange (EDI), used traditionally to exchange business documents, has recently been extended to facilitate interorganizational collaborative processes such as the continuous replenishment program (CRP). The key characteristics of CRP are the sharing of real-time inventory data by retailers with manufacturers and continuous replenishment of retailer inventory by manufacturers. Prior research on EDI has focused on the transaction efficiency of EDI. We analyze the impact of information sharing and continuous replenishment in the CRP context and study the factors that affect the value of CRP. The study quantifies the value derived from CRP and the optimal number of retailers a manufacturer should partner with.

Suggested Citation

  • Srinivasan Raghunathan & Arthur B. Yeh, 2001. "Beyond EDI: Impact of Continuous Replenishment Program (CRP) Between a Manufacturer and Its Retailers," Information Systems Research, INFORMS, vol. 12(4), pages 406-419, December.
    • Handle: RePEc:inm:orisre:v:12:y:2001:i:4:p:406-419
    DOI: 10.1287/isre.12.4.406.9701
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    References listed on IDEAS

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    Cited by:

    1. Michelle Blom & Slava Shekh & Don Gossink & Tim Miller & Adrian R Pearce, 2020. "Inventory routing for defense: Moving supplies in adversarial and partially observable environments," The Journal of Defense Modeling and Simulation, , vol. 17(1), pages 55-81, January.
    2. Raghunathan, Srinivasan, 2003. "Impact of demand correlation on the value of and incentives for information sharing in a supply chain," European Journal of Operational Research, Elsevier, vol. 146(3), pages 634-649, May.
    3. Erik Hofmann, 2017. "Big data and supply chain decisions: the impact of volume, variety and velocity properties on the bullwhip effect," International Journal of Production Research, Taylor & Francis Journals, vol. 55(17), pages 5108-5126, September.
    4. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 2004. "Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect"," Management Science, INFORMS, vol. 50(12_supple), pages 1887-1893, December.
    5. Huy Chhaing & Eiji Takeda, 2004. "The Effect of Partial Information Sharing in a Two-Level Supply Chain," Discussion Papers in Economics and Business 04-02, Osaka University, Graduate School of Economics.
    6. Ye Shi & Layth C. Alwan & Srinivasan Raghunathan & Yugang Yu & Xiaohang Yue, 2021. "Mobile Consumer Scanning Technology: A Replacement for Interorganizational Information Systems for Demand Information Learning in Supply Chains?," Information Systems Research, INFORMS, vol. 32(4), pages 1431-1449, December.
    7. Birendra K. Mishra & Srinivasan Raghunathan, 2004. "Retailer- vs. Vendor-Managed Inventory and Brand Competition," Management Science, INFORMS, vol. 50(4), pages 445-457, April.
    8. Kogan, Konstantin, 2012. "Ship-to-order supplies: Contract breachability and the impact of a manufacturer-owned direct channel," European Journal of Operational Research, Elsevier, vol. 218(1), pages 113-123.
    9. Shnaiderman, Matan & Ben-Baruch, Liron, 2016. "Control and enforcement in order to increase supplier inventory in a JIT contract," European Journal of Operational Research, Elsevier, vol. 250(1), pages 143-154.
    10. Falasca, Mauro & Kros, John F., 2018. "Success factors and performance outcomes of healthcare industrial vending systems: An empirical analysis," Technological Forecasting and Social Change, Elsevier, vol. 126(C), pages 41-52.
    11. Yao, Yuliang & Dong, Yan & Dresner, Martin, 2010. "Managing supply chain backorders under vendor managed inventory: An incentive approach and empirical analysis," European Journal of Operational Research, Elsevier, vol. 203(2), pages 350-359, June.
    12. Sabitha, Devarajulu & Rajendran, Chandrasekharan & Kalpakam, S. & Ziegler, Hans, 2016. "The value of information sharing in a serial supply chain with AR(1) demand and non-zero replenishment lead times," European Journal of Operational Research, Elsevier, vol. 255(3), pages 758-777.
    13. Shih-Hsien Tseng & Hui-Ming Wee & Samuel Reong & Chun-I Wu, 2019. "Considering JIT in Assigning Task for Return Vehicle in Green Supply Chain," Sustainability, MDPI, vol. 11(22), pages 1-23, November.
    14. Choudhary, Devendra & Shankar, Ravi, 2015. "The value of VMI beyond information sharing in a single supplier multiple retailers supply chain under a non-stationary (Rn, Sn) policy," Omega, Elsevier, vol. 51(C), pages 59-70.

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