Article
Engineering, Industrial
Xide Zhu, Lingling Xie, GuiHua Lin, Xiuyan Ma
Summary: Vendor-managed inventory (VMI) programs are a useful strategy in supply chain management to address uncertainty in supply and demand and improve sustainability. However, empirical literature has shown that participants' decisions often deviate from theoretical predictions, and supply chain participants' inequality and decision-makers' personalities can lead to decision divergence. This research proposes a new inventory model that focuses on the theory of choice to understand the supplier's replenishment decision. It also constructs a two-tier supply chain model with a revenue-sharing contract to derive optimal sharing percentage and replenishment quantity.
INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING COMPUTATIONS
(2022)
Article
Engineering, Industrial
Xide Zhu, Lingling Xie, GuiHua Lin, Xiuyan Ma
Summary: Vendor-managed inventory (VMI) programs are gaining attention in supply chain management as a strategy to improve system flexibility and sustainability. However, empirical literature shows deviations from theoretical predictions, with supplier decisions influenced by behavioral patterns and individual personalities in replenishment decisions.
INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING COMPUTATIONS
(2022)
Article
Economics
Mehmet Soysal, Cagri Koc, Mustafa Cimen, Merve Ibis
Summary: This paper studies a closed-loop inventory routing problem with demand uncertainty, focusing on the delivery and pick-up operations in a supply chain. The problem involves decision-making on vehicle routes, quantities, production and buying costs. A mathematical model is formulated and a solution approach is proposed for large instances. Case studies and numerical analyses are conducted to evaluate the effects of different parameters and demonstrate the benefits of the proposed approach.
SOCIO-ECONOMIC PLANNING SCIENCES
(2023)
Article
Automation & Control Systems
Navid Mohamadi, Seyed Taghi Akhavan Niaki, Mahdi Taher, Ali Shavandi
Summary: This article explores the complex issue of perishable inventory allocation within a two-echelon supply chain and proposes a deep reinforcement learning approach to tackle the challenges posed by uncertain demands and variable supply conditions. Empirical experiments using real-world data from a blood supply chain affirm the effectiveness of the proposed algorithm in addressing the inventory allocation problem, highlighting its significance in enhancing efficiency and operational excellence in perishable supply chains.
ENGINEERING APPLICATIONS OF ARTIFICIAL INTELLIGENCE
(2024)
Article
Engineering, Industrial
Joep van den Bogaert, Willem van Jaarsveld
Summary: VMI agreements empower suppliers with autonomy and efficiency in maintaining buyer inventory, exploring different approaches for suppliers to stay within VMI limits, while noting misalignment between supplier and buyer objectives. The research categorizes suppliers into four types based on historical inventory trajectories, and sets tailored inventory limits accordingly. Simulation results suggest that adjusting inventory limits based on supplier types may lead to cost reduction of 4-6% without compromising service levels.
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
(2022)
Article
Management
Milena Bieniek
Summary: Inventory control is a crucial activity in supply chain management, with Vendor Managed Inventory (VMI) and Vendor Managed Inventory with consignment (VMCI) being common techniques. In VMCI, decisions are made in two steps by the vendor and retailer to maximize their expected profits, considering stochastic, additive, and price-sensitive customer demand.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Management
Pietro De Giovanni
Summary: Implementing smart systems in supply chain management can improve efficiency and eliminate error terms, but the costs of implementation may pose challenges. These systems can help better meet consumer demands, but their impact on production and emissions may raise concerns about responsible digitalization.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Operations Research & Management Science
Reza Lotfi, Mohsen Rajabzadeh, Abolfazl Zamani, Mohammad Sadra Rajabi
Summary: This research focuses on improving supply chain agility through the use of blockchain technology, and considers risk and robustness by incorporating weighted expected value, worst case, and Entropic Value at Risk in the objective function. The findings show that the cost function is reduced when using blockchain technology, and can be increased by adjusting the conservative coefficient and resiliency coefficient.
ANNALS OF OPERATIONS RESEARCH
(2022)
Article
Mathematical & Computational Biology
Sharmila Saren, Rekha Guchhait, Ali AlArjani, Biswajit Sarkar
Summary: Retailers are important in supply chain management as they directly interact with consumers, sometimes withholding system data from manufacturers, causing data asymmetry. This research aimed to achieve system reliability through a vendor-managed inventory policy. Results show that implementing a cap and trade policy effectively controls carbon emissions in production and transportation sectors. Numerical and sensitivity analyses, along with graphical representations, were used to evaluate optimal outcomes. The study assumes random lead time demand for items, following uniform and normal distributions. It demonstrates that this research is 50.24% more economically beneficial than previous methods when demand follows a uniform distribution.
MATHEMATICAL BIOSCIENCES AND ENGINEERING
(2023)
Article
Computer Science, Artificial Intelligence
Katherinne Salas-Navarro, Juan M. Romero-Montes, Jaime Acevedo-Chedid, Holman Ospina-Mateus, Whady F. Florez, Leopoldo Eduardo Cardenas-Barron
Summary: This paper proposes a Vendor Managed Inventory model for a three-layer supply chain. It develops a joint optimization model to maximize the benefit function of the supply chain, considering constant deteriorating rates and probabilistic demand rates of retailers. A collaborative approach is taken among the chain members to avoid risks associated with deterioration items.
EXPERT SYSTEMS WITH APPLICATIONS
(2023)
Article
Management
Sandria Weisshuhn, Kai Hoberg
Summary: The study analyzes a Smart Replenishment system utilizing IoT technology, extending the concept of Vendor-Managed Inventory to end consumers. Results show that leveraging point-of-consumption information can significantly enhance replenishment decisions and service levels, improving delivery capacity utilization.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Computer Science, Interdisciplinary Applications
Mehmet Soysal, Sedat Belbag, Cagri Sel
Summary: This study addresses the Closed-Loop Inventory Routing Problem under a mixed fleet of electric and conventional vehicles, presenting a Mixed-Integer Linear Programming model and a Fix&Optimize algorithm to tackle larger problem instances. The models incorporate comprehensive estimation approaches for energy consumption, allowing for better estimation of costs and emissions, while also considering uncertain reverse returnable transport items flow from customers. Numerical analyses demonstrate the benefits of using the provided models, with the Fix&Optimize algorithm resulting in lower costs and shorter computation times compared to the Mixed-Integer Linear Programming model.
COMPUTERS & INDUSTRIAL ENGINEERING
(2021)
Article
Computer Science, Information Systems
Chang-Yi Kao, Hao-En Chueh
Summary: This study aims to construct a SCADA system based on IoT and AI to monitor production capacity and predict product sales, addressing the key issue of maintaining sufficient inventory in intelligent manufacturing.
Article
Computer Science, Artificial Intelligence
Heris Golpira, Erfan Babaee Tirkolaee, Reza Maihami, Kajal Karimi
Summary: This paper proposes a novel tri-objective robust MILP model for a two-echelon supply chain configuration considering Vendor-Managed Inventory (VMI) policy and Supply Chain Visibility (SCV) under uncertain demand. The objectives are to maximize total visibility, minimize deficient products, and minimize total cost. The LP-metric is used to handle the tri-objectiveness of the model. The results show that the proposed approach successfully establishes robustness by deteriorating the optimal values of the objective functions as the cost of robustness. A sensitivity analysis reveals that uncertainty has the greatest impact on network cost and deficiency of objective functions. The change in the lower visibility threshold parameter has the greatest effect on the SCV function.
EXPERT SYSTEMS WITH APPLICATIONS
(2023)
Article
Computer Science, Information Systems
Daoping Wang, Zhe Wang, Boqing Zhang, Linda (Xiaowei) Zhu
Summary: This study proposes a commitment penalty contract to improve the performance of a VMI supply chain in an asymmetric information environment and finds that the retailer can coordinate the supply chain under bilateral asymmetric information.
ENTERPRISE INFORMATION SYSTEMS
(2022)
