Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system

Rahim, Mohd Kamarul Irwan Abdul; Aghezzaf, El‐Houssaine; Limère, Veronique; Raa, Birger

doi:10.1080/00207721.2014.965771

Cited by 8 publications

(4 citation statements)

References 54 publications

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“…A VRP Spread Solver has been applied in Huang et al (2015) to solve the problem. Rahim et al (2016) studied a two-stage one-warehouse n-retailer supply chain system with the coordination of the incoming shipments into the warehouse and the outgoing shipments from the warehouse to the retailers. The objective of Rahim et al (2016) is to minimise the system cost, which includes the inventory holding costs at the central warehouse and all retailers, as well as the transportation cost for incoming shipment into the warehouse, and outbound shipment for the replenishment for the retailers.…”

Section: Methodology and Operations Reviewmentioning

confidence: 99%

“…Rahim et al (2016) studied a two-stage one-warehouse n-retailer supply chain system with the coordination of the incoming shipments into the warehouse and the outgoing shipments from the warehouse to the retailers. The objective of Rahim et al (2016) is to minimise the system cost, which includes the inventory holding costs at the central warehouse and all retailers, as well as the transportation cost for incoming shipment into the warehouse, and outbound shipment for the replenishment for the retailers. In this paper, we shall study the stock transfer in a one-warehouse n-retailer system, where the stock-out of the retail stores can be served by the transfer from other stores.…”

Section: Methodology and Operations Reviewmentioning

confidence: 99%

“…Various distribution models for the one-warehouse n-retailer system have also been discussed by several researchers. Rahim et al (2016) developed a two-phase optimisation approach for coordinating the shipments in a one-warehouse n-retailer system to minimise the overall inventory cost and transportation cost incurred in the system. In the first phase, the replenishment cycles of the retailers are optimised with the objective of minimising the inventory cost of the system.…”

Section: Introductionmentioning

confidence: 99%

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Redesigning one-warehousen-retailer routing model in inter-store stock transfer operations of an international retail chain distribution

Wong

Tai

Yan

et al. 2018

APJML

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Purpose The effectiveness of product replenishment and responsiveness of customer service delivery impact largely on satisfaction and retention of customers in retail chain logistics distribution. The fast moving goods in the complex delivery network and limited vehicle resource often lead to long customer waiting time in stock replenishment. With lack of literature systematically reviewing factors affecting retail distribution in inter-store stock transfer services and improving the operations, the purpose of this paper is to analyse and enhance this service for the retail to reduce customer dissatisfaction by developing an integrated quality service improvement methodology and an optimisation tool to improve the product delivery services. Design/methodology/approach This paper reviews inter-store stock transfer operations and the process capability of an international retail chain, and proposes improvements by integrating Six Sigma, factor analysis, and optimisation modelling. User experience and expectations are evaluated through an empirical survey. A novel principle component factored inter-store stock transfer model is developed to improve replenishment operations. A total of 11 factors affecting inter-store stock transfer delivery time are analysed. An extended model with principal component factors incorporated is developed for the simulation. Findings The Cpk value of 0.51 shows significant difference between the experienced and expected waiting time. With the inter-store stock transfer optimisation model developed, the model assists traffic personnel on the vehicle route planning with multiple pick-up and drop-off locations. The system also ensures the best routing with a minimal travelling time planned, facilitating a reduction of the inter-store stock transfer time, thus improving the customer waiting time. Four significant factors affecting the delivery time are also identified from exploratory and confirmatory factor analysis. The results are analysed with an extended principal component factored inter-store stock transfer model. Practical implications The developed inter-store stock transfer models minimise stock transfer time, increase customer satisfaction, and reduce loss of sales. An integrated service quality improvement methodology has been developed and applied in reviewing significant factors affecting inter-store stock transfer operations. Originality/value This paper presents an analysis on inter-store stock transfer operations of an international retail and proposes enhancements on the operations by integrating Six Sigma, factor analysis, and optimisation modelling. A novel principal component factored inter-store stock transfer model is developed to improve the stock replenishment operations.

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Section: Methodology and Operations Reviewmentioning

confidence: 99%

Section: Methodology and Operations Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Redesigning one-warehousen-retailer routing model in inter-store stock transfer operations of an international retail chain distribution

Wong

Tai

Yan

et al. 2018

APJML

View full text Add to dashboard Cite

show abstract

“…Such synchronized policy is adopted in this thesis. Rahim et al (2016) present a two-phase optimization approach to coordinate the shipments in the vendor-managed inventory (VMI) policy system. The difference between their newer model and the traditional two-echelon one is that products can now be transferred between retailers.…”

Section: Single-supplier Multi-retailer Supply Chainmentioning

confidence: 99%

Multi-retailer Cold Chain Management with Multi-stage Quality Degradation and Stochastic Demand

Chen

2023

Preprint

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<p>Comprehensive models are developed to minimize the total costs of single-supplier (or manufacturer) multi-retailer cold chains in food industry systems. A cold chain is a supply chain with the storage temperature controlled. A well-operated cold chain can preserve the quality of food at a high level and reduce the cost resulted from the quality degradation. Quality degradation is influenced by storage temperature and time and can be measured by using many indices. The global stability index method and non-Arrhenius model are integrated to model the overall quality degradation of a product and to formulate the cost associated with quality degradation. The total cost of a cold chain is the summation of the supplier’s (or manufacturer’s) and retailers’ costs. The costs associated with the supplier or manufacturer include setup, holding, cooling, and transportation costs. The carbon emission cost in transit is also taken into account. The costs related with the retailers include setup, holding, and cooling costs as well as the loss of value resulted from quality degradation of a product. The customer demand of a product is modeled as both deterministic and stochastic. The following four scenarios are investigated: (1) the optimal replenishment times for the supplier and retailers are determined for a single-supplier multi-retailer cold chain with deterministic demand and quality degradation occurring only at the retailers’ side, (2) the optimal replenishment times for the supplier and retailers are found for a single-manufacturer multi-retailer cold chain having deterministic demand and quality degradation taking place in transit and at the retailers’ side, (3) the optimal production rate and replenishment time for the manufacturer as well as the optimal replenishment times and reorder levels for the retailers are determined for a single- manufacturer multi-retailer cold chain with stochastic demand and quality degradation occurring at the manufacturer’s and retailers’ sides, and (4) the optimal replenishment times and order up-to-levels for the vendor and retailers are found for a single-vendor multi-retailer cold chain having stochastic demand and quality degradation taking place at the manufacturer’s and retailers’ sides. </p>

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A review on sustainable inventory routing

Soysal

Çi̇men

Belbağ

et al. 2019

Computers & Industrial Engineering

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Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system

Cited by 8 publications

References 54 publications

Redesigning one-warehousen-retailer routing model in inter-store stock transfer operations of an international retail chain distribution

Redesigning one-warehousen-retailer routing model in inter-store stock transfer operations of an international retail chain distribution

Multi-retailer Cold Chain Management with Multi-stage Quality Degradation and Stochastic Demand

A review on sustainable inventory routing

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