The Economic and Environmental Benefits of VMI Adoption in Multi-Retailer Systems

2016 ◽  
pp. 19-38 ◽  
Author(s):  
Arqum Mateen ◽  
Ashis K. Chatterjee
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Numerical Analysis ◽  
Business Processes ◽  
Supply Chain Coordination ◽  
Environmental Benefits ◽  
Vendor Managed Inventory ◽  
Significant Potential ◽  
Environmental Considerations

There is an increasing push towards integrating environmental considerations in decision making in organizations. Rethinking and realigning existing business processes has been touted to offer significant potential in reducing the ecological footprint. Specifically, the role of logistics and supply chain has come into prominence in this regard. In this chapter, a supply chain with a single vendor and multiple retailers has been considered. Initially, we assume that the retailers take care of their respective replenishment decisions. Then, it is shown that by adopting vendor managed inventory, the organizations involved can benefit through cost reduction, and at the same time reduce their greenhouse gas emissions, thereby highlighting the role of supply chain coordination in meeting the twin objectives. Managerial and policy insights based on our numerical analysis have also been provided.

Supply Chain Coordination Mechanism Logistics Cost Optimization Analysis

2013 ◽  
Vol 785-786 ◽  
pp. 1473-1476 ◽  
Author(s):  
Qiang Yang ◽  
Hong Xiang Zhu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Coordination ◽  
Cost Optimization ◽  
Coordination Mechanism ◽  
Vendor Managed Inventory ◽  
Optimization Analysis ◽  
Logistics Cost ◽  
Decentralized Decision Making ◽  
Inventory Coordination

This paper deals with a two-stage supply chain including one supplier and one purchaser. The two coordination mechanisms: traditional supply chain and vendor-managed inventory, are analyzed on their logistics cost optimization capabilities under the centralized and decentralized decision-making conditions. The conclusions are that the logistics costs are same under the centralized decision-making; vendor-managed inventory coordination mechanism is better than traditional supply chain coordination mechanism under the decentralized decision-making.

scholarly journals Reengineering of supply chain management integrated scheduling processes

2018 ◽  
Vol 193 ◽  
pp. 05064 ◽  
Author(s):  
Ekaterina Kuleshova ◽  
Anastasia Levina ◽  
Rustam Esedulaev
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Business Process ◽  
Business Processes ◽  
Current Practice ◽  
Oil And Gas ◽  
Chain Management ◽  
Integrated Scheduling ◽  
Data Flows

The paper describes the principle of the reengineering of supply chain management integrated scheduling processes in order to increase in efficiency of business process and decrease the decision-making time at collision of plan-fact deviations. The basic concept of business-processes reengineering is analyzed. The experience of reengineering of supply chain integrated scheduling business processes for the oil and gas branch is presented. The bottlenecks of the current practice were revealed. The purpose of this paper is to carry out recommendations for improving business processes based on an analysis of the current realization of the process, his provision with information systems and data flows.

IT-Based Classification for Supply Chain Coordination Mechanisms

2013 ◽  
pp. 148-162 ◽  
Author(s):  
Fereshteh Ghahremani ◽  
Mohammad Jafar Tarokh
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Supply Chains ◽  
Supply Chain Coordination ◽  
Coordination Mechanisms ◽  
Effective Solution ◽  
New Classification ◽  
Role Of It

Managing dependencies via coordination is an effective solution for the problems that arise from these interdependencies in supply chains. This can be practical via a set of methods called coordination mechanisms. Numerous coordination mechanisms have been discussed before in literature. This paper develops a new classification of these mechanisms on the basis of information technology (IT) impact on them. This classification proves the important role of IT in better coordinating supply chains and help managers distinguish between coordination mechanisms that are created and improved by information technology and thus lead them to have the best choice based on their infrastructures and organization type.

Information Technology Enabled Vendor Managed Inventory in Modelling Supply Chain Issues

2010 ◽  
pp. 226-252 ◽  
Author(s):  
Subramanian Nachiappan ◽  
Natarajan Jawahar
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Business Processes ◽  
Theoretical Background ◽  
Inventory Systems ◽  
Successful Implementation ◽  
Vendor Managed Inventory ◽  
Cooperative Agreements ◽  
Communication And Coordination ◽  
Operational Issues

Supply chain is a network of firms interacting in a linear fashion to produce, sell and deliver a product or service to a predetermined market segment. It links all the chain partners within and across organization to work competitively by forming the partnerships together with the integration of business processes, technical and organizational aspects. The successful implementation of supply chain management depends on many soft issues (strategic/behavioural). The soft issues of supply chain models can be dealt through proper information sharing, communication and coordination between the stages of supply chain. Vendor managed inventory is a proven concept for successful collaborative and cooperative agreements in supply chain. This chapter reviews some of the soft issues in two-echelon supply chain models and proposes a classification schema. This chapter surveys the theoretical background and application of vendor managed inventory systems based on environment, operational issues and solution approaches. Hence it is concluded that the framework presented in this chapter would aid supply chain managers and researchers to further look into the soft issues while modeling supply chain with information technology enabled vendor managed inventory systems.

scholarly journals The More Supply Chain Control Power, the Better? A Comparison among Four Kinds of Cooperation Models

2015 ◽  
Vol 2015 ◽  
pp. 1-19 ◽  
Author(s):  
Weihua Liu ◽  
Shuqing Wang ◽  
Donglei Zhu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
The Other ◽  
Order Quantity ◽  
Control Power ◽  
Decentralized Decision Making ◽  
Optimal Value ◽  
Total Profit

This paper introduces the parameter of supply chain control power into existing supply chain coordination models and explores the impacts of control power on the profits of manufacturer, retailer, and the overall supply chain under four modes of decision-making, including the decentralized decision-making dominated by manufacturer, the decentralized decision-making dominated by retailer, centralized decision-making, and Nash negotiation decision-making. Some significant conclusions are obtained. Firstly, supply chain control power does have great impact on the supply chain profits. The profit of the whole supply chain with centralized decision-making is higher than those of the other three modes, while the overall profit of supply chain with decentralized decision-making is superior to the profit when retailer and manufacturer dominate the supply chain together. Secondly, with decentralized decision-making, for manufacturer and retailer, it is beneficial to gain the control powers of the supply chain; however, control power has an optimal value, not the bigger, the better. Thirdly, under certain circumstances, order quantity will increase and the wholesale price will decrease when control power is transferred from manufacturer to retailer. In this case, the total profit of supply chain dominated by retailer will be greater than that dominated by manufacturer.

Coordination and Decision of Supply Chain Under

2019 ◽  
Vol 12 (3) ◽  
pp. 21-46 ◽  
Author(s):  
Guangdong Liu ◽  
Tianjian Yang ◽  
Yao Wei ◽  
Xuemei Zhang
Keyword(s):  
Supply Chain ◽  
Numerical Analysis ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Pareto Improvement ◽  
Optimal Price ◽  
Decentralized System ◽  
Risk Neutral ◽  
Future Work ◽  
Dependent Demand

In order to investigate supply chain coordination and decision under customer balking and stochastic demand, the article considers a two-echelon supply chain consisting of one manufacturer with risk-neutral and one retailer with risk-neutral and develops two models in a centralized and a decentralized system and the three contracts are designed to coordinate supply chain and the optimal price and customer balking strategies are obtained. The results show that the revenue and cost-sharing contract can coordinate supply chain under customer balking and price-dependent demand and achieve the Pareto-improvement; the expected sales quantity and expected reduced sales quantity are influenced conversely by the threshold of inventory and probability of a sale under customer balking. In addition, numerical analysis is given to verify the effectiveness of revenue and cost-sharing contract and the paper gives some managerial insights and puts forward to the future work at last.

scholarly journals Supply chain management of coffee commodities

2018 ◽  
Vol 197 ◽  
pp. 14003 ◽  
Author(s):  
Andri Ikhwana
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chain Coordination ◽  
Business Management ◽  
Quality Standards ◽  
Main Role ◽  
Chain Management ◽  
Basic Model ◽  
Supply Chain Configuration

This study is aimed at describing the supply chain management of coffee commodity and the role of each of its elements. This study based on the ineffectiveness and inefficiency of coffee commodity business management which involves some elements that caused supply chain for the commodity has not been formed according to the expectation which in turn required a supply chain management able to fix the problem. The supply chain management is described qualitatively using supply chain basic model supported by integrated concepts of supply chain relationship, supply chain configuration, and supply chain coordination. The result of the study reveals that the supply chain management in coffee commodities includes suppliers, gatherers/manufacturers, exporters, and consumers. The distributors play the main role in determining product standards. The relationships between each of supply chain elements have been well established, utilized to distribute the products, and used as a feedback medium if there is a change in quality standards required in accordance with the needs of consumers. To ensure the sustainability of business activities in the supply chain, mutual commitment among the supply chain elements is required especially when it comes to determining the product quality standards and quantity.

Developing Organizational Agility through IT and Supply Chain Capability

2013 ◽  
Vol 21 (4) ◽  
pp. 38-55 ◽  
Author(s):  
Rui Bi ◽  
Robert Davidson ◽  
Booi Kam ◽  
Kosmas Smyrnios
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Business Processes ◽  
Environmental Changes ◽  
Organizational Agility ◽  
It Capability ◽  
Industrial Sectors ◽  
Medium Enterprises ◽  
Role Of It

Organizations have increasingly invested money in information technology (IT) in order to improve their agility. It is generally believed that organizations with greater IT investment tend to be more agile to response to environmental changes. However, the issue of whether IT is an enabler or impeder of organizational agility still remains unresolved. Drawing upon resource-based view theory and the literatures of information systems and supply chain management, the authors develop and test a theoretical model that integrates IT capability, supply chain capability and organizational agility. The authors propose that IT capability enables the development of a higher level of supply chain capability which is embedded within inter-firm processes and in turn enhances organizational agility. Structural equation modelling is employed to test their theoretical conceptualization of 310 Australian fast-growth small-to-medium enterprises across different industrial sectors. The results show that IT capability does contribute to firm agility through enhancing inter-firm supply chain processes such as integration, information sharing and coordination. This research highlights the role of IT-enabled intermediated processes and the ways in which IT is used by firms to enhance core business processes.

scholarly journals Supply Chain Coordination under Trade Credit and Quantity Discount with Sales Effort Effects

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Zhihong Wang ◽  
Shaofeng Liu
Keyword(s):  
Supply Chain ◽  
Analytical Model ◽  
Hybrid Model ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Market Demand ◽  
Quantity Discount ◽  
Model Combining ◽  
Effort Effect

The purpose of this paper is to investigate the role of trade credit and quantity discount in supply chain coordination when the sales effort effect on market demand is considered. In this paper, we consider a two-echelon supply chain consisting of a single retailer ordering a single product from a single manufacturer. Market demand is stochastic and is influenced by retailer sales effort. We formulate an analytical model based on a single trade credit and find that the single trade credit cannot achieve the perfect coordination of the supply chain. Then, we develop a hybrid quantitative analytical model for supply chain coordination by coherently integrating incentives of trade credit and quantity discount with sales effort effects. The results demonstrate that, providing that the discount rate satisfies certain conditions, the proposed hybrid model combining trade credit and quantity discount will be able to effectively coordinate the supply chain by motivating retailers to exert their sales effort and increase product order quantity. Furthermore, the hybrid quantitative analytical model can provide great flexibility in coordinating the supply chain to achieve an optimal situation through the adjustment of relevant parameters to resolve conflict of interests from different supply chain members. Numerical examples are provided to demonstrate the effectiveness of the hybrid model.

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