IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v16y2024i2p212-218.html
   My bibliography  Save this article

Enhancing Supply Chain Efficiency: Implementation of Vendor Managed Inventory in Inventory Routing Problem

Author

Listed:
  • Afif Zuhri Muhammad Khodri Harahap
  • Ahmad Suffian Mohd Zahari
  • Noor Malinjasari Ali
  • Rabiatul Adawiyah Ma'arof

Abstract

This article explores the integration of Vendor Managed Inventory (VMI) into the framework of the Inventory Routing Problem (IRP) as a strategic approach to enhance supply chain efficiency. VMI involves suppliers taking an active role in managing customer inventory levels and fostering real-time communication and data sharing. The Inventory Routing Problem addresses the challenge of optimizing delivery routes while simultaneously managing inventory levels. The benefits of implementing VMI in IRP include improved demand forecasting, reduced stockouts and overstock situations, and optimized routing and transportation. The study applies a method that strategically integrates Vendor Managed Inventory (VMI) into the Inventory Routing Problem (IRP) framework, utilizing real-time data sharing and optimized routing algorithms to enhance supply chain efficiency. This approach is evaluated through research findings highlighting its benefits and implementation challenges. Thus, we discuss the potential advantages and challenges associated with this integration. While VMI in IRP offers substantial benefits, data security, cultural shifts, and IT system integration must be addressed for successful implementation. This article provides insights into the promising synergy between VMI and IRP, offering organizations a competitive edge in the dynamic supply chain management landscape.

Suggested Citation

  • Afif Zuhri Muhammad Khodri Harahap & Ahmad Suffian Mohd Zahari & Noor Malinjasari Ali & Rabiatul Adawiyah Ma'arof, 2024. "Enhancing Supply Chain Efficiency: Implementation of Vendor Managed Inventory in Inventory Routing Problem," Information Management and Business Review, AMH International, vol. 16(2), pages 212-218.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:2:p:212-218
    DOI: 10.22610/imbr.v16i2(I)S.3761
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3761/2480
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3761
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v16i2(I)S.3761?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
    ---><---

    References listed on IDEAS

    as
    1. Huang, Shan-Huen & Lin, Pei-Chun, 2010. "A modified ant colony optimization algorithm for multi-item inventory routing problems with demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 598-611, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Ying & Qi, Mingyao & Miao, Lixin & Liu, Erchao, 2014. "Hybrid metaheuristic solutions to inventory location routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 305-323.
    2. Saha, Subrata & Chatterjee, Debajyoti & Sarkar, Biswajit, 2021. "The ramification of dynamic investment on the promotion and preservation technology for inventory management through a modified flower pollination algorithm," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    3. Song, Ruidian & Zhao, Lei & Van Woensel, Tom & Fransoo, Jan C., 2019. "Coordinated delivery in urban retail," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 122-148.
    4. Yves Crama & Mahmood Rezaei & Martin Savelsbergh & Tom Van Woensel, 2018. "Stochastic Inventory Routing for Perishable Products," Transportation Science, INFORMS, vol. 52(3), pages 526-546, June.
    5. Paredes-Belmar, Germán & Marianov, Vladimir & Bronfman, Andrés & Obreque, Carlos & Lüer-Villagra, Armin, 2016. "A milk collection problem with blending," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 26-43.
    6. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    7. Alvarez, Aldair & Cordeau, Jean-François & Jans, Raf & Munari, Pedro & Morabito, Reinaldo, 2021. "Inventory routing under stochastic supply and demand," Omega, Elsevier, vol. 102(C).
    8. Chih-Kang Lin & Shangyao Yan & Fei-Yen Hsiao, 2021. "Optimal Inventory Level Control and Replenishment Plan for Retailers," Networks and Spatial Economics, Springer, vol. 21(1), pages 57-83, March.
    9. Feng, Yuqiang & Che, Ada & Tian, Na, 2024. "Robust inventory routing problem under uncertain demand and risk-averse criterion," Omega, Elsevier, vol. 127(C).
    10. Vidović, Milorad & Popović, Dražen & Ratković, Branislava, 2014. "Mixed integer and heuristics model for the inventory routing problem in fuel delivery," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 593-604.
    11. Li, Ming & Wang, Zheng & Chan, Felix T.S., 2016. "A robust inventory routing policy under inventory inaccuracy and replenishment lead-time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 290-305.
    12. Cheng, Chun & Qi, Mingyao & Wang, Xingyi & Zhang, Ying, 2016. "Multi-period inventory routing problem under carbon emission regulations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 263-275.
    13. Mirzapour Al-e-hashem, S.M.J. & Rekik, Yacine, 2014. "Multi-product multi-period Inventory Routing Problem with a transshipment option: A green approach," International Journal of Production Economics, Elsevier, vol. 157(C), pages 80-88.
    14. Mirzapour Al-e-hashem, Seyed M.J. & Rekik, Yacine & Mohammadi Hoseinhajlou, Ebrahim, 2019. "A hybrid L-shaped method to solve a bi-objective stochastic transshipment-enabled inventory routing problem," International Journal of Production Economics, Elsevier, vol. 209(C), pages 381-398.
    15. Soysal, Mehmet & Bloemhof-Ruwaard, Jacqueline M. & Haijema, Rene & van der Vorst, Jack G.A.J., 2015. "Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 164(C), pages 118-133.
    16. Mosca, Alyssa & Vidyarthi, Navneet & Satir, Ahmet, 2019. "Integrated transportation – inventory models: A review," Operations Research Perspectives, Elsevier, vol. 6(C).
    17. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.
    18. Hadi Jahangir & Mohammad Mohammadi & Seyed Hamid Reza Pasandideh & Neda Zendehdel Nobari, 2019. "Comparing performance of genetic and discrete invasive weed optimization algorithms for solving the inventory routing problem with an incremental delivery," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2327-2353, August.
    19. S. Charles Raja & A. C. Vishnu Dharssini & J. Jeslin Drusila Nesmalar & T. Karthick, 2023. "Deployment of IoT-Based Smart Demand-Side Management System with an Enhanced Degree of User Comfort at an Educational Institution," Energies, MDPI, vol. 16(3), pages 1-24, January.
    20. Keskin, Merve & Branke, Juergen & Deineko, Vladimir & Strauss, Arne K., 2023. "Dynamic multi-period vehicle routing with touting," European Journal of Operational Research, Elsevier, vol. 310(1), pages 168-184.

    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:rnd:arimbr:v:16:y:2024:i:2:p:212-218. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    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.