MATEC Web of Conferences
Volume 58, 2016The 3rd Bali International Seminar on Science & Technology (BISSTECH 2015)
|Number of page(s)||6|
|Published online||23 May 2016|
The Implementation of Vendor Managed Inventory In the Supply Chain with Simple Probabilistic Inventory Model
Departement of Industrial Engineering, Faculty of Engineering, University of Trunojoyo Madura, Indonesia
Numerous studies show that the implementation of Vendor Managed Inventory (VMI) benefits all members of the supply chain. This research develops model to prove the benefits obtained from implementing VMI to supplier-buyer partnership analytically. The model considers a two-level supply chain which consists of a single supplier and a single buyer. The analytical model is developed to supply chain inventory with probabilistic demand which follows normal distribution. The model also incorporates lead time as a decision variable and investigates the impacts of inventory management before and after the implementation of the VMI. The result shows that the analytical model has the ability to reduce the supply chain expected cost, improve the service level and increase the inventory replenishment. Numerical examples are given to prove them.
Key words: inventory / supply chain / economic / probabilistic
© Owned by the authors, published by EDP Sciences, 2016
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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