Advertisement

Journal of Intelligent Manufacturing

, Volume 23, Issue 1, pp 91–108 | Cite as

A supply chain performance analysis of a pull inspired supply strategy faced to demand uncertainties

  • G. Marquès
  • J. Lamothe
  • C. Thierry
  • D. Gourc
Article

Abstract

Vendor Managed Inventory (VMI) is currently seen as a short-term replenishment pull system. Moreover, VMI is usually synonymous with a distribution context and stable demand. However, industrial partners are faced with uncertainty in the context of a B to B relationship. Thus, an adaptation of the actors’ planning processes is needed and the question is posed of the interest of VMI in a context of uncertain demand. The purpose of this paper is firstly to analyze the link between VMI and pull logic. Secondly, we explore the extension of VMI notions to the relationship between industrial partners and we confront VMI with uncertain demand in terms of trend, vision of the trend and variability in order to verify the usual stable demand assumption. We also present an integration of VMI into a simulation tool called LogiRisk that we have developed for the evaluation of risks of in supply chain collaboration policies, and a small case study.

Keywords

Vendor Managed Inventory Pull Simulation Risk Uncertainty 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Achabal D., McIntyre S., Smith S., Kalyanam K. (2000) A decision support system for Vendor Managed Inventory. Journal of Retailing 76(4): 430–454CrossRefGoogle Scholar
  2. Benton W., Shin H. (1998) Manufacturing planning and control: The evolution of MRP and JIT integration. European Journal of Operational Research 110(3): 411–440CrossRefGoogle Scholar
  3. Blatherwick A. (1998) Vendor Managed Inventory fashion fad important supply chain strategy. Supply Chain an International Journal 3(1): 10–11CrossRefGoogle Scholar
  4. Cetinkaya S., Lee C. (2000) Stock replenishment and shipment scheduling for Vendor Managed Inventory systems. Management Science 46(2): 217–232CrossRefGoogle Scholar
  5. Claassen M. J. T., Van Weele A. J., Van Raaij E. M. (2008) Performance outcomes and success factors of Vendor Managed Inventory (VMI). Supply Chain Management: An International Journal 13(6): 406–414CrossRefGoogle Scholar
  6. Clark T. H., Hammond J. H. (1997) Reengineering channel reordering processes to improve total supply-chain performance. Production and Operations Management 6(3): 248–265CrossRefGoogle Scholar
  7. de Toni A. F., Zamolo E. (2005) From a traditional replenishment system to vendor-managed inventory: A case study from the household electrical appliances sector. International Journal of Production Economics 96(1): 63–79CrossRefGoogle Scholar
  8. Deakins E., Dorling K., Scott J. (2008) Determinants of successful Vendor Managed Inventory practice in oligopoly industries. International Journal of Integrated Supply Management 4(3/4): 355–377CrossRefGoogle Scholar
  9. Disney S. M., Towill D. R. (2003) The effect of Vendor Managed Inventory (VMI) dynamics on the Bullwhip Effect in supply chains. International Journal of Production Economics 85(2): 199–215CrossRefGoogle Scholar
  10. Dong Y., Xu K., Dresner M. (2007) Environmental determinants of VMI adoption: An exploratory analysis. Transportation research Part E 43: 355–369CrossRefGoogle Scholar
  11. Dudek G., Stadtler H. (2005) Negotiation based collaborative planning between supply chains partners. European Journal of Operational Research 163: 668–687CrossRefGoogle Scholar
  12. Gaury E. G. A., Pierreval H., Kleinjnen J. P. C. (2000) An evolutionary approach to select a pull system among Kanban, Conwip and Hybrid. Journal of Intelligent Manufacturing 11(2): 157–167CrossRefGoogle Scholar
  13. Gronalt M., Rauch P. (2008) Vendor Managed Inventory in wood processing industries—a case study. Silva Fennica 42(1): 101–114Google Scholar
  14. Gröning, A., & Holma, H. (2007). Vendor Managed Inventory, preparation for an implementation of a pilot project guidance for an upcoming evaluation at Volvo. Master’s thesis. Lulea University of technology.Google Scholar
  15. Henningsson, E., & Lindén, T. (2005). Vendor Managed Inventory: Enlightening benefits and negative effects of VMI for Ikea and its suppliers. Master’s Thesis. Lulea University of Technology.Google Scholar
  16. Ho J. C., Chang Y. L. (2001) An integrated MRP and JIT framework. Computers and Industrial Engineering 41(2): 173–185CrossRefGoogle Scholar
  17. Holmström J. (1998) Business process innovation in the supply chain—a case study of implementing Vendor Managed Inventory. European Journal of Purchasing and Supply Management 4(2–3): 127–131CrossRefGoogle Scholar
  18. Holweg M., Disney S., Holmström J., Smarös J. (2005) Supply chain collaboration: Making sense of the strategy continuum. European Management Journal 23(2): 170–181CrossRefGoogle Scholar
  19. Ireland, R.K., & Crum, C. (2005). Supply chain collaboration, how to implement CPFR and other best collaborative practices. J. Ross publishing and APICS (p. 206).Google Scholar
  20. Ip W. H., Huang M., Yung K. L., Wang D., Wang X. (2007) CONWIP based control of a lamp assembly production line. Journal of Intelligent Manufacturing 18(2): 261–271CrossRefGoogle Scholar
  21. Kaipia R., Holmström J., Tanskanen K. (2002) VMI What are you losing if you let your customer place orders?. Production Planning and Control 13(1): 17–25CrossRefGoogle Scholar
  22. Kaipia R., Tanskanen K. (2003) Vendor managed category management—an outsourcing solution in retailing. Journal of Purchasing and Supply Management 9: 165–175CrossRefGoogle Scholar
  23. Kauremaa, J., Småros, J., & Holmström, J. (2007). Empirical evaluation of VMI: Two ways to benefit. In Proceedings of NOFOMA 2007.Google Scholar
  24. Kuk G. (2004) Effectiveness of Vendor Managed Inventory in the electronics industry: Determinants and outcomes. Information and Management 41: 645–654CrossRefGoogle Scholar
  25. Lamothe J., Mahmoudi J., Thierry C. (2007) Cooperation to reduce risk in a telecom supply chain, special issue managing supply chain risk. Supply Chain Forum: An International Journal 8(2): 36–53Google Scholar
  26. Mahmoudi, J. (2006). Simulation et gestion des risques en planification distribuée de chaînes logistiques: Application au secteur de l’électronique et des télécommunications. PhD. Ecole Nationale Supérieure de l’Aéronautique et de l’Espace.Google Scholar
  27. Marques, G., Lamothe, J., Thierry, C., & Gourc, D. (2008). Vendor Managed Inventory, from concept to processes, for a supply chain collaborative approach. International Conference on Information Systems, Logistics and Supply Chain, Madison, United-States, May 2008.Google Scholar
  28. Matsumoto M., Nishimura T. (1998) Mersenne twister: A 623-dimensionally equidistributed uniform pseudorandom number generator. ACM Transactions on Modeling and Computer Simulation 8(1): 3–30CrossRefGoogle Scholar
  29. ODETTE. (2004). Vendor Managed Inventory (VMI) (version 1.0).Google Scholar
  30. Rusdiansyah A., Tsao D. (2005) Coordinating deliveries and inventories for supply chain under Vendor Managed Inventory system. JSME International Journal 48(2): 85–90CrossRefGoogle Scholar
  31. Smaros J., Lethonen J. M., Appelqvist P., Holmstrom J. (2003) The impact increasing demand visibility production inventory control efficiency. International Journal of Physical Distribution and Logistics Management 33(4): 336–354CrossRefGoogle Scholar
  32. Spearman M. L., Zazanis M. A. (1992) Push and pull production systems: Issues and comparisons. Operations Research 40(3): 521–532CrossRefGoogle Scholar
  33. Tang C. (2006) Perspectives in supply chain risk management. International Journal of Production Economics 103: 451–488CrossRefGoogle Scholar
  34. Tyan J., Wee H. (2002) Vendor Managed Inventory: A survey of the Taiwanese grocery industry. Journal of Purchasing and Supply Management 9(1): 11–18CrossRefGoogle Scholar
  35. Vigtil A. (2007) Information exchange in Vendor Managed Inventory. International Journal of Physical Distribution and Logistics Management 37(2): 131–147CrossRefGoogle Scholar
  36. Vigtil, A., & Dreyer, H. (2008). Critical aspects of information and communication technology in Vendor Managed Inventory. Lean business systems and beyond, 257 (pp. 443–451). Berlin: IFIP International Federation for Information Processing, Springer.Google Scholar
  37. Yao, Y., & Dresner, M. (2007). The inventory value of information sharing, continuous replenishment, and vendor-managed inventory. Transportation Research Part E: Logistics and Transportation Reviews. (in press, corrected proof, available online 9 April 2007).Google Scholar
  38. Yao Y., Evers P., Dresner M. (2007) Supply chain integration in vendor-managed inventory. Decision Support Systems 43(2): 663–674CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  • G. Marquès
    • 1
    • 2
  • J. Lamothe
    • 1
  • C. Thierry
    • 2
  • D. Gourc
    • 1
  1. 1.Université de Toulouse, Mines Albi, Centre Génie IndustrielAlbi CT Cedex 09France
  2. 2.Université de Toulouse, IRITToulouseFrance

Personalised recommendations