4.5 Article

Quantifying the effectiveness of VMI and integrated inventory management in a supply chain with uncertain lead-times and uncertain demands

期刊

PRODUCTION PLANNING & CONTROL
卷 19, 期 6, 页码 590-600

出版社

TAYLOR & FRANCIS LTD
DOI: 10.1080/09537280802420571

关键词

inventory management; supply chain; uncertainty; vendor-managed inventory; stochastic dynamic programming

资金

  1. Engineering and Physical Sciences Research Council (EPSRC) [EP/E000398/1, EP/F012918/1]
  2. EPSRC [EP/F012918/1, EP/E000398/1] Funding Source: UKRI
  3. Engineering and Physical Sciences Research Council [EP/E000398/1, EP/F012918/1] Funding Source: researchfish

向作者/读者索取更多资源

This article considers the inventory management problem in a supply chain with uncertain replenishment lead-times and uncertain demands. The optimal integrated inventory management (IIM) policy is developed using stochastic dynamic programming theory. The IIM policy is contrasted with two pull-type vendor-managed inventory policies (VMI-1 and VMI-2) and a traditional retailer-managed inventory policy (RMI). Computational results show that in such stochastic supply chains, IIM performs about 23, 15, and 3% better than the optimised RMI, VMI-1 and VMI-2 policies, respectively, while two VMI policies are about 8 and 20% better than the best RMI. The basestock-based VMI-2 is a very good form of VMI. The ANOVA analysis reveals that the replenishment lead-times have the largest effect on the relative performance between IIM and other policies. Numerical examples demonstrated that the IIM policy has good structural properties and can be characterised by a set of switching curves.

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