| Title | A New Model for Consignment and Vendor Managed Inventory in Single-Vendor Multiple Buyers Supply Chains |
| Year | 2018 |
| Degree | Master |
| School | Department of Transportation and Logistics Management College of Management National Chiao Tung University |
| Author | |
| Summary | This study is interested in finding the optimal replenishment schedule using a “vendor managed inventory and consignment” (VMI & CS) policy in a supply chain with a single vendor and multiple buyers. Different from other studies in the literature, we propose to plan the vendor’s production schedule under Power-of-Two (PoT) policy in which the vendor’s replenishment cycle time for each buyer must be a PoT-integer multiple of a basic period. This study investigates two kinds of vendor-buyers partnership: (1) the vendor has a VMI & CS partnership with buyers, and (2) the vendor and the buyers belong to the same vertically integrated firm. We formulate the corresponding mixed binary integer programming models for both scenarios to determine the vendor’s replenishment cycle times for all the buyers and its own production schedule so as to minimize the average total costs (including ordering, inventory holding, and setup costs), while the vendor meets all the buyers’ demand. We evaluated the effectiveness of our proposed models by comparing their optimal solutions with those from the models in the literature. The results of our numerical experiments show that the proposed models may bring solutions with more than 8% cost-saving for some parameter settings as comparing with the models in the literature. |
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