Inventory Management of Medical Equipment Vendors under the Uncertain Demand

2011 ◽  
Vol 225-226 ◽  
pp. 1129-1132
Author(s):  
Lu Shi ◽  
Xin Ma
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Medical Equipment ◽  
Integrated Approach ◽  
Uncertain Demand ◽  
Vendor Managed Inventory ◽  
Coordination Problem ◽  
Related Research ◽  
Demand Fluctuations ◽  
Equipment Supplier

The remarkable interest in the supply chain management related research in the last decade has been due to its potential to improve the efficiency of operations and reduce cost. Vendor managed inventory is an integrated approach for market patricians coordination according to which the vendor decides on the appropriate inventory levels within bounds. The coordination problem for a two stage supply chain composed of a medical equipment supplier and a retailer is considered in this paper. The inventory management of medical equipment vendors under the uncertain demand is analysis and the model is designed, the variables of shortage cost and inventories cost are derived on the two cases with the demand fluctuations and the results are also discussed.

scholarly journals A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain

2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Inventory Management ◽  
Raw Materials ◽  
Integrated Approach ◽  
Service Level ◽  
Pharmaceutical Products ◽  
Management Problem ◽  
Pharmaceutical Supply Chain ◽  
Customer Service Level

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.

scholarly journals Gerenciamento de estoques e vendor managed inventory: um estudo de caso em uma rede supermercadista

2015 ◽  
Vol 1 (1) ◽  
pp. 50-59
Author(s):  
Letícia De Cassia Teixeira Vilhena ◽  
Priscilla Cristina Cabral Ribeiro
Keyword(s):  
Inventory Management ◽  
Cost Reduction ◽  
Qualitative Approach ◽  
Vendor Managed Inventory ◽  
Structured Interviews ◽  
Safety Stock ◽  
Food Retailer ◽  
Demand Fluctuations ◽  
Increasing Demand

Among logistics activities, inventory management stands out for cost increasing, demand fluctuations and for ensuring reasonable operational resources use. Therefore, a tool that enables more efficient inventory management Vendor Managed Inventory - VMI. It enables inventory monitoring by the supplier, being his responsibility immediately resupply when safety stock is reached. In face of such importance, this study aims to analyze VMI adoption in a food retailer inventory. So, a qualitative approach was used, presenting a case study, with semi-structured interviews with a script of questions. Thus, through this research we could identify advantages such as stock and delivery cost reduction.

A Mechanism Design Approach to Vendor Managed Inventory

2020 ◽  
Vol 66 (6) ◽  
pp. 2628-2652 ◽  
Author(s):  
Bharadwaj Kadiyala ◽  
Özalp Özer ◽  
Alain Bensoussan
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Operations Management ◽  
Inventory Level ◽  
Local Market ◽  
Management Problem ◽  
Vendor Managed Inventory ◽  
Market Conditions ◽  
Market Signals ◽  
Pos Data

This paper studies an inventory management problem faced by an upstream supplier that is in a collaborative agreement, such as vendor-managed inventory (VMI), with a retailer. A VMI partnership provides the supplier an opportunity to manage inventory for the supply chain in exchange for point-of-sales (POS)- and inventory-level information from the retailer. However, retailers typically possess superior local market information and as has been the case in recent years, are able to capture and analyze customer purchasing behavior beyond the traditional POS data. Such analyses provide the retailer access to market signals that are otherwise hard to capture using POS information. We show and quantify the implication of the financial obligations of each party in VMI that renders communication of such important market signals as noncredible. To help institute a sound VMI collaboration, we propose learn and screen—a dynamic inventory mechanism—for the supplier to effectively manage inventory and information in the supply chain. The proposed mechanism combines the ability of the supplier to learn about market conditions from POS data (over multiple selling periods) and dynamically determine when to screen the retailer and acquire his private demand information. Inventory decisions in the proposed mechanism serve a strategic purpose in addition to their classic role of satisfying customer demand. We show that our proposed dynamic mechanism significantly improves the supplier’s expected profit and increases the efficiency of the overall supply chain operations under a VMI agreement. In addition, we determine the market conditions in which a strategic approach to VMI results in significant profit improvements for both firms, particularly when the retailer has high market power (i.e., when the supplier highly depends on the retailer) and when the supplier has relatively less knowledge about the end customer/market compared with the retailer. This paper was accepted by Gad Allon, operations management.

The Effect of Different Payment Terms on Order Variability in a Supply Chain

2005 ◽  
pp. 90-108
Author(s):  
I. Nyoman Pujawan
Keyword(s):  
Information System ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Lot Sizing ◽  
Bullwhip Effect ◽  
Uncertain Demand ◽  
Vendor Managed Inventory ◽  
Chain Management ◽  
Parameter Values ◽  
Order Variability

Literature on supply chain management has acknowledged the effects of forecasting techniques, lot sizing rules, centralising information system, vendor managed inventory, and various biases and noises on order variability or bullwhip effect. We will show in this chapter that order variability from a buyer is also affected by the payment terms offered by the supplier. We develop mathematical models to accommodate different payment terms into the lot sizing techniques. The models are then simulated under uncertain demand situations over a range of parameter values. The results suggest that payment terms have substantial impacts on order variability passed by a supply chain channel onto its upstream channel.

scholarly journals A Neutrosophic Fuzzy Optimisation Model for Optimal Sustainable Closed-Loop Supply Chain Network during COVID-19

2021 ◽  
Vol 14 (11) ◽  
pp. 519
Author(s):  
Agnieszka Szmelter-Jarosz ◽  
Javid Ghahremani-Nahr ◽  
Hamed Nozari
Keyword(s):  
Supply Chain ◽  
Medical Equipment ◽  
Closed Loop ◽  
Time Window ◽  
Time Windows ◽  
Uncertain Demand ◽  
Suitable Model ◽  
Supply Chain Network ◽  
Closed Loop Supply Chain ◽  
Fuzzy Method

In this paper, a sustainable closed-loop supply chain problem is modelled in conditions of uncertainty. Due to the COVID-19 pandemic situation, the designed supply chain network seeks to deliver medical equipment to hospitals on time within a defined time window to prevent overcrowding and virus transmission. In order to achieve a suitable model for designing a sustainable closed-loop supply chain network, important decisions such as locating potential facilities, optimal flow allocation, and vehicle routing have been made to prevent the congestion of vehicles and transmission of the COVID-19 virus. Since the amount of demand in hospitals for medical equipment is unknown, the fuzzy programming method is used to control uncertain demand, and to achieve an efficient solution to the decision-making problem, the neutrosophic fuzzy method is used. The results show that the designed model and the selected solution method (the neutrosophic fuzzy method) have led to a reduction in vehicle traffic by meeting the uncertain demand of hospitals in different time windows. In this way, both the chain network costs have been reduced and medical equipment has been transferred to hospitals with social distancing.

A Comparative Simulation Study about Supply Chain Inventory Management Strategies Based on System Dynamics

2014 ◽  
Vol 701-702 ◽  
pp. 1280-1285 ◽  
Author(s):  
Ling Yun Wei ◽  
Ming Xiang Wen ◽  
Xiao Guang Zhou
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Inventory Management ◽  
Simulation Study ◽  
Management Strategies ◽  
Simulation Models ◽  
Vendor Managed Inventory ◽  
Fill Rate ◽  
Total Cost ◽  
Inventory Strategy

This paper aims to compare benefits of Vendor Managed Inventory (VMI) system and Collaborative Planning, Forecasting, and Replenishment (CPFR) system based on (R,Q) inventory strategy. Four-stage supply chain models that are simulated by system dynamics (SD) methods will be used to support the comparison. In addition, factors of total cost for the whole supply chain (TSC) and product fill rate (fr) can assist to evaluate simulation models. The results of this study indicate that benefits and flexibility of CPFR appear to be higher than VMI under (R, Q) strategy, and key parameters have significant impacts on TSC of the two systems.

A geometric programming approach for a vendor managed inventory of a multiretailer multi-item EPQ model

2020 ◽  
Vol 54 (5) ◽  
pp. 1401-1418
Author(s):  
Yasaman Karimian ◽  
Abolfazl Mirzazadeh ◽  
Seyed Hamidreza Pasandideh ◽  
Mohammad Namakshenas
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Geometric Programming ◽  
Optimal Solution ◽  
Programming Approach ◽  
Stochastic Environment ◽  
Vendor Managed Inventory ◽  
Economic Production ◽  
Epq Model ◽  
Total Inventory

Due to the uncertain situations of the world, considering inventory management in a stochastic environment gains a lot of interest. In this paper, we propose a multi-item economic production quantity (EPQ) model with a shortage for a single-vendor, multi-retailer supply chain under vendor managed inventory (VMI) policy in a stochastic environment. Three stochastic constraints are developed in the model. Geometric programming (GP) approach is employed to find the optimal solution of the nonlinear stochastic programming problem to minimize the mean-variance of the total inventory cost of the system. Since the problem is in the Signomial form, first, an algorithm is used to convert the model into the standard GP form. The performance of the addressed model and the solving method are evaluated based on computational experiments and sensitivity analysis. A case study in an Iranian furniture supply chain is conducted to show the applicability of the proposed model and 17.78% improvement in terms of total cost is gained.

Sign in / Sign up

Export Citation Format

Share Document