A multi-criteria decision making model for readiness assessment of vendor managed inventory in healthcare

The relationship between vendor managed inventory and operational performance

“…The concept of VMI emerged on anticipation that suppliers would pose a better resource at managing the customer's inventory from their experience in approximating lead times. Popularized by its implementation in the USA, by Wal-Mart and Procter and Gamble, VMI has been replicated in many industries all over the world (Erikshammar et al , 2013; Sumrit, 2019; Marques et al , 2008; Yang et al , 2017). Also, referred to as “continuous replenishment” or “supplier-managed inventory” (Sari, 2016; Joseph et al , 2010), VMI is a system of frequent and punctual deliveries that optimize production and transport planning (Marques et al , 2008).…”

“…Jermsittiparsert and Srihirun (2019) suggest that leadership plays an integral role in the success of every organization and its SCM strategies. Implementation, coordination and facilitation of VMI requires top management commitment (Sumrit, 2019) to be effective. Sen et al (2014) and Zachariassen et al (2014) also defend the impact of digitization on VMI.…”

“…VMI has become a key SC management strategy for organizations across the world (Borade and Bansod, 2010). With its inception earlier as collaboration between Wal-Mart and Procter and Gamble (Sumrit, 2019), VMI gradually has been popularized in various industries, both large and small for their supply chains. VMI is an SCM practice where the vendor is given the sole responsibility to monitor and manage the inventory of the retailer (Joseph et al , 2010).…”

“…VMI is an SCM practice where the vendor is given the sole responsibility to monitor and manage the inventory of the retailer (Joseph et al , 2010). VMI is giving a competitive advantage to vendors which results in timely availability of stock (Sari, 2007; Sumrit, 2019). The platform also offers retailers lower inventory cost, limited to higher selling space productivity and improved control on bullwhip effect and better stock replenishment plan (Zachariassen et al , 2014).…”

Supplier selection for vendor-managed inventory in healthcare using fuzzy multi-criteria decision-making approach ,

“…Few research studied VMI implementation be successful in hospital, e.g., Dong and Xu (2002) represented VMI benefits to be useful to reduce stock holding; Classen, et al (2008) suggested supplier relationship with good IT infrastructure resulted from VMI usage; Hui (2010) suggested supply chain management in hospital based on VMI; and Bhakoo et al ( 2012) found that various benefits were perceived from collaborative agreements among supply chain of hospital partners. Moreover, healthcare sector, as a part of service industry, has been extensively studied in several aspects; for example, an influence of the related parties through inventory systems in healthcare (De Vries, 2011) , a making decision on an appropriated product selection for professional healthcare staffs ( Chen et al , 2013) , an explore of the impact of VMI practices on warehouse and inventory management of hospital (Ngampunvetchakul, 2014); cost-benefit sharing in healthcare supply chain collaboration (Niemsakul et al, 2018); a multicriteria decision making model for readiness assessment of vendor managed inventory in healthcare (Sumrit, 2019); and a generic framework for hospital supply chain (Ziat et al, 2019).…”