2003
DOI: 10.1016/s1366-5545(03)00014-0
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The impact of vendor managed inventory on transport operations

Abstract: This paper investigates the impact of a Vendor Managed Inventory (VMI) strategy upon transportation operations in a supply chain. Specifically, the issue of batching to enable better use of transport vehicles is studied. A system dynamics methodology is used to develop difference equation models of three scenarios -traditional, internal consolidation and VMI. The holistic nature of inventory management within VMI enables batching to minimise transport demand without negatively impacting the overall dynamic per… Show more

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Cited by 124 publications
(47 citation statements)
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“…In these models, the ordering rule is based upon the forecasted demand (FD), the difference between the desired level of inventory (DINV) and the actual inventory level, and the difference between the desired level of WIP (DWIP) and the actual WIP level. The ordering rule is a very general replenishment rule, the advantages of which include ability to represent material requirements planning (MRP) systems as a special case (Disney, 2001), ability to represent order-up-to systems and many variants as special cases (Dejonckheere et al, 2003), lean and agile scheduling policies can be incorporated (Dejonckheere et al, 2003), re-entrant manufacturing systems can be modelled (Tang and Naim, 2004), vendor managed inventory (VMI) strategy can be coupled (Disney, 2001;Disney et al, 2003), representative of industrial performance in UK (Coyle, 1977), represents human behaviour models whilst playing the Beer Game (John et al, 1994).…”
Section: Modelling the Production Ordering And Inventory Control Systemmentioning
confidence: 99%
“…In these models, the ordering rule is based upon the forecasted demand (FD), the difference between the desired level of inventory (DINV) and the actual inventory level, and the difference between the desired level of WIP (DWIP) and the actual WIP level. The ordering rule is a very general replenishment rule, the advantages of which include ability to represent material requirements planning (MRP) systems as a special case (Disney, 2001), ability to represent order-up-to systems and many variants as special cases (Dejonckheere et al, 2003), lean and agile scheduling policies can be incorporated (Dejonckheere et al, 2003), re-entrant manufacturing systems can be modelled (Tang and Naim, 2004), vendor managed inventory (VMI) strategy can be coupled (Disney, 2001;Disney et al, 2003), representative of industrial performance in UK (Coyle, 1977), represents human behaviour models whilst playing the Beer Game (John et al, 1994).…”
Section: Modelling the Production Ordering And Inventory Control Systemmentioning
confidence: 99%
“…A well-known concept that is related to FGP is Vendor Managed Inventory (VMI, see for example, Cheung andLee 2002 andDisney et al 2003). VMI also places the control of inventory and primary transportation, and sometimes even secondary transportation (Silver et al 1998) The aim of the present study was to quantify the expected benefits of FGP for the Dutch retail sector.…”
Section: Introductionmentioning
confidence: 99%
“…On the other hand demand signal processing (Forrester effect), batching and behavioral causes classified as 'determinants' which amplify the demand variance and require significant redesign action are more critical. The 'determinants' therefore require priority focus with regard to studying their impact on the 'backlash' effect from which the batching aspect was recently studied by Disney et al (2003). This paper is therefore aimed at exploring the 'backlash' in shipments arising from Demand Signal Processing (Forrester Effect).…”
Section: The 'Bullwhip' Effectmentioning
confidence: 99%