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When Does A Supply Chain Member Benefit from Vendor-Managed Inventory?

机译:供应链成员什么时候可以从供应商管理的库存中受益?

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Enabled by the advances in information technology (IT), many supply chain partners have adopted the practice of vendor-managed inventory (VMI) to improve operations efficiency. While the IT investment for VMI implementation can be significant, the benefits of VMI to different supply chain members are not obvious based on anecdotal evidences and empirical studies. This paper studies the effects of VMI on a supply chain consisting of one manufacturer and one retailer to shed light on when an IT investment for VMI adoption can be justified. We show that whether the two supply chain members benefit from VMI depends on how the holding or shortage cost increment from the manufacturer to retailer compares with two corresponding critical values. We then develop comparative statics results on how these critical values change with respect to different parameters. Interestingly, the retailer is more likely to benefit from the adoption of VMI when its inventory holding cost is low, and the manufacturer is more likely to benefit from VMI adoption when its inventory holding cost is high, contradicting what our intuitions would suggest and what has been prescribed in the literature.
机译:在信息技术(IT)的发展推动下,许多供应链合作伙伴已采用供应商管理库存(VMI)的做法来提高运营效率。尽管用于VMI实施的IT投资可能是巨大的,但根据传闻证据和实证研究,VMI对不同供应链成员的好处并不明显。本文研究了VMI对由一个制造商和一个零售商组成的供应链的影响,以阐明何时可以合理地采用IT进行VMI投资。我们表明,两个供应链成员是否受益于VMI取决于从制造商到零售商的持有或短缺成本增量与两个对应的临界值的比较。然后,我们针对这些临界值相对于不同参数的变化情况得出比较静态的结果。有趣的是,当零售商的库存持有成本较低时,零售商更可能从采用VMI中受益,而当零售商的库存持有成本较高时,制造商则更可能从VMI中受益,这与我们的直觉和建议相矛盾。在文献中有规定。

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