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1 – 10 of over 5000
Article
Publication date: 4 June 2018

Zhenjie Wang and Zhuquan Wang

Under the guidance of Professor Wang Zhuquan’s channel-based working capital management concept, this paper, using a sample of A-listed companies from 2007 to 2013, aims…

Abstract

Purpose

Under the guidance of Professor Wang Zhuquan’s channel-based working capital management concept, this paper, using a sample of A-listed companies from 2007 to 2013, aims to explore the possibility of measuring vendor relationships from the supply chain (channel) perspective for the first time, making universal testing for working capital management based on vendor relationships. Through systematically answering the question of who is the biggest beneficiary of working capital management based on vendor relationships and to discuss whether suppliers are more willing to provide “timely help” to weak enterprises or to exert an “icing on the cake” effect on strong enterprises, this paper provides a systematic explanation of the causes and economic consequences of working capital management based on vendor relationships.

Design/methodology/approach

The authors constructed three models to test the hypotheses of this study. Model (1) explores the cause of working capital management based on vendor relationship from three angles: market position, industry competition degree and property right. Models (2) and (3) examine the economic consequences of working capital management based on vendor relationship from the two aspects of alleviating financing constraints and improving enterprises’ sustained growth capability.

Findings

Working capital management based on vendor relationships has a more significant “timely help” effect on weak companies, which was proved by the inclination of companies with lower market positions, higher industrial competition and private ownerships to adopt working capital management based on vendor relationships. From the perspective of economic consequences, while China’s listed companies benefit generally from working capital management based on vendor relationships, the weak enterprises are the biggest beneficiaries. Based on vendor relationships, the weak enterprises can relieve financing constraints and improve continuous growth capacity. It provides further evidence that suppliers could provide “timely help” to weak enterprises.

Originality/value

The results of this study find that the competition between supply chains replaces the competition among enterprises, and suppliers are more willing to provide “timely help” to weak enterprises rather than to exert an “icing on the cake” effect on strong enterprises. In addition, the working capital management based on vendor relationships facilitates the cooperation of enterprises and suppliers and improves the overall efficiency of the supply chain.

Details

Nankai Business Review International, vol. 9 no. 2
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 15 February 2013

Cristina Machado Guimarães, José Crespo de Carvalho and Ana Maia

Understanding how VMI benefits serve lean purposes in healthcare and why its outcomes can be difficult to achieve in healthcare settings is the main purpose of this study.

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Abstract

Purpose

Understanding how VMI benefits serve lean purposes in healthcare and why its outcomes can be difficult to achieve in healthcare settings is the main purpose of this study.

Design/methodology/approach

An in‐depth case study of VMI is presented in the perspective of the downstream member, a public general multi‐site hospital, operating as a small scale consolidated service centre in terms of material management, exploring such dimensions as: VMI benefits, risks, barriers and enablers.

Findings

Despite some unawareness of VMI benefits in healthcare, it can present a waste reduction solution not only in costs but in the quality of care for freeing clinical professionals to clinical tasks, among other savings. The multiple benefits are better explored, as in any relationship building, by investing in partnership creation and overcoming the idiosyncratic barriers of the healthcare sector.

Research limitations/implications

Although findings of a single case study are difficult to generalize, the protocol and methodology presented allow replication in other units of analysis with the same inclusion criteria.

Practical implications

This paper brings the lean deployment discussion out of the organization's boundaries, showing the interconnections and pointing to the need for future work that would allow healthcare managers to build a lean supply chain.

Originality/value

By considering VMI an outsourcing alternative, this paper identifies the lean thinking intent behind such options and enhances the idiosyncratic difficulties in full deployment in the healthcare sector, a less studied setting.

Details

Strategic Outsourcing: An International Journal, vol. 6 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 1 March 2000

Johanna Småros and Jan Holmström

Current e‐grocery models are based on the consumer making his or her purchase over the Internet, and the e‐grocer delivering the purchase to the household. However, there…

3325

Abstract

Current e‐grocery models are based on the consumer making his or her purchase over the Internet, and the e‐grocer delivering the purchase to the household. However, there are numerous opportunities for innovative new services. Analyzes the opportunities offered by bar code and radio frequency identification (RFID) technology to develop a new type of e‐grocery related service, namely vendormanaged inventory (VMI) in the household. In assessing the opportunity for extending the value offering of an e‐grocery business to VMI in the household a number of key operational issues are addressed, i.e. data capture, solution robustness and cost saving potential in the supply chain. The analysis indicates that the development of new value offerings such as VMI is critical if e‐grocery businesses are ever to gain a competitive advantage over traditional retail formats.

Details

International Journal of Retail & Distribution Management, vol. 28 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 30 September 2022

Kwame Owusu Kwateng, Benjamin Fokuoh and Francis Kamewor Tetteh

For the supply chain to be responsive in the age of globalization, the firm needs to adopt strategies to enable them to meet the changing market needs. Thus, it is…

Abstract

Purpose

For the supply chain to be responsive in the age of globalization, the firm needs to adopt strategies to enable them to meet the changing market needs. Thus, it is essential to adopt automatic replenishment programmes such as vendor-managed inventory (VMI). This study sought to examine the relationship between VMI and operational performance (OP) and the moderation roles of leadership and digitization in the mining sector.

Design/methodology/approach

A quantitative approach was used, including primary data collected from industry players in the mining sector in Ghana. A total of 97 industry players were included in the study. Data gathered was analysed using SPSS and LISREL (8.5).

Findings

The results indicate that VMI significantly affects OP. However, both digitization and leadership failed to moderate the relationship between VMI and OP.

Practical implications

The study offers mining companies an understanding of VMI applications in their industry. The knowledge will stimulate and improve inventory management practices in the mining industry.

Originality/value

This study is among the first few attempts to understand VMI in the mining industry, especially in the Sub-Saharan Africa context. It presents a detailed understanding of VMI and opportunities for future research.

Details

Modern Supply Chain Research and Applications, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 1 January 2007

Malla Reddy and Prem Vrat

This paper describes with the help of a case study how vendor managed inventory (VMI) model managers in real time the dynamic needs of supply chain process. Throughout the…

2300

Abstract

This paper describes with the help of a case study how vendor managed inventory (VMI) model managers in real time the dynamic needs of supply chain process. Throughout the supply chain, VMI model is a way to cut inventory related costs and keep inventory levels low. VMI model helps companies to reduce the inventory‐associated costs by shifting the responsibility of managing and replenishing inventory to vendors. A study of a leading tyre manufacturer (XYZ) is reported. The supply chain of this company includes raw materials, manufacturing operations and the distribution network. The product range includes truck tyres, front‐end tractor tyres, scooter tyres, LCV tyres, and passenger radial tyres for both domestic and international market from manufacturing plants at different locations in the country. A prototype of VMI model based on simulation approach has been developed to illustrte how VMI model can enhance the performance of this organization by minimizing the inventory associated costs.

Details

Journal of Advances in Management Research, vol. 4 no. 1
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 28 May 2021

Zubair Ashraf and Mohammad Shahid

The proposed IT2FMOVMI model intends to concurrently minimize total cost and warehouse space for the single vendor-retailer, multi-item and a consolidated vendor store…

Abstract

Purpose

The proposed IT2FMOVMI model intends to concurrently minimize total cost and warehouse space for the single vendor-retailer, multi-item and a consolidated vendor store. Regarding demand and order quantities with the deterministic and type-1 fuzzy numbers, we have also formulated the classic/crisp MOVMI model and type-1 fuzzy MOVMI (T1FMOVMI) model. The suggested solution technique can solve both crisp MOVMI and T1FMOVMI problems. By finding the optimal ordered quantities and backorder levels, the Pareto-fronts are constructed to form the solution sets for the three models.

Design/methodology/approach

A multi-objective vendor managed inventory (MOVMI) is the most recognized marketing and delivery technique for the service provider and the retail in the supply chain in Industry 4.0. Due to the evolving market conditions, the characteristics of the individual product, the delivery period and the manufacturing costs, the demand rate and order quantity of the MOVMI device are highly unpredictable. In such a scenario, a MOVMI system with a deterministic demand rate and order quantity cannot be designed to estimate the highly unforeseen cost of the problem. This paper introduces a novel interval type-2 fuzzy multi-objective vendor managed inventory (IT2FMOVMI) system, which uses interval type-2 fuzzy numbers (IT2FNs) to represent demand rate and order quantities. As the model is an NP-hard, the well-known meta-heuristic algorithm named NSGA-II (Non-dominated sorted genetic algorithm-II) with EKM (Enhanced Karnink-Mendel) algorithm based solution method has been established.

Findings

The experimental simulations for the five test problems that demonstrated distinct conditions are considered from the real-datasets of SAPCO company. Experimental study concludes that T1FMOVMI and crisp MOVMI schemes are outclassed by IT2FMOVMI model, offering more accurate Pareto-Fronts and efficiency measurement values.

Originality/value

Using fuzzy sets theory, a significant amount of work has been already done in past decades from various points of views to model the MOVMI. However, this is the very first attempt to introduce type-2 fuzzy modelling for the problem to address the realistic implementation of the imprecise parameters.

Details

International Journal of Intelligent Computing and Cybernetics, vol. 14 no. 3
Type: Research Article
ISSN: 1756-378X

Keywords

Article
Publication date: 30 July 2019

Bo Yan, Xiaoxu Chen, Yanping Liu and Chang Xia

The cluster supply chain is widely used in the professional towns in China, and improves the competitiveness of small and medium enterprises through integrating the supply…

Abstract

Purpose

The cluster supply chain is widely used in the professional towns in China, and improves the competitiveness of small and medium enterprises through integrating the supply chain with the industrial cluster. The paper aims to discuss this issue.

Design/methodology/approach

This paper studies a cluster supply chain under vendor managed inventory (VMI) system, which includes vendors, third-party logistics (TPL) enterprises and retail enterprises, and aims to study the replenishment decisions and coordination contracts in the supply chain. The economic order quantity model is applied to analyze the influence of marginal transportation cost factor under two replenishment modes – direct delivery and milk-run delivery, in order to find out the optimal replenishment decisions corresponding to different marginal transportation cost factors. And then, the revenue sharing contract is used to identify the change of profits of enterprises in the supply chain before and after the coordination contract.

Findings

It is concluded that the marginal transportation cost factor is an important factor influencing the replenishment decision especially in milk-run delivery, and the introduction of the revenue sharing contract can improve the revenue in the supply chain.

Originality/value

This is the first study that explores the relationship between a single transport cost and a single transport batch of cluster supply chain in centralized VMI & TPL system. The conclusions of the study have certain theoretical significance for the decision making and coordination of cluster supply chain.

Details

Industrial Management & Data Systems, vol. 119 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 12 February 2018

Seyed Hamid Reza Pasandideh, Seyed Taghi Akhavan Niaki and Pejman Ahmadi

In this paper, the joint replenishment problem is modeled for a two-level supply chain consisting of a single supplier and multiple retailers that use the vendor-managed

Abstract

Purpose

In this paper, the joint replenishment problem is modeled for a two-level supply chain consisting of a single supplier and multiple retailers that use the vendor-managed inventory (VMI) policy for several products. This paper aims to find the optimal number of products to order in both policies, the optimal times at which each retailer orders the products in the traditional policy and the optimal times at which the supplier orders the product in the VMI policy.

Design/methodology/approach

The problem is first formulated into the framework of a constrained integer nonlinear programming model; then, the problem is solved using a teacher-learner based optimization algorithm. As there are no benchmarks available in the literature, a genetic algorithm is used as well to validate the results obtained.

Findings

The solutions obtained using both the algorithms for several numerical examples are compared to the ones of a random search procedure for further validation. A real case is solved at the end to demonstrate the applicability of the proposed methodology and to compare both the policies.

Research limitations/implications

The paper does not have any special limitations.

Practical implications

The study has significant practical implications for the sellers and for the suppliers who have to get the most profit. Also, satisfying the constraints make decision more complicated.

Originality/value

This paper has two main originalities. The authors have developed the model of the joint replenishment problem and have contributed in the problem-solving process. They have used a new meta-heuristic and then compared it to a classic one.

Details

Journal of Modelling in Management, vol. 13 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 14 August 2017

Sineenart Krichanchai and Bart L. MacCarthy

The purpose of this paper is to investigate vendor managed inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may…

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Abstract

Purpose

The purpose of this paper is to investigate vendor managed inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may affect VMI adoption.

Design/methodology/approach

Two contrasting VMI initiatives involving five organizations (three hospitals, one distributor and one manufacturer/supplier) are studied. A case study method with semi-structured interviews is used with triangulation in data collection, site visits and document analysis to enhance reliability and validity. The cases are analyzed and compared with respect to hospital, supplier, product and supply chain integration characteristics.

Findings

A successful public sector VMI initiative and an unsuccessful private sector VMI initiative are identified. The public sector supplier focuses on improving service level while the private sector supplier seeks to strengthen relationships with a key customer. Hospital characteristics, including type of hospital, top management perspectives and the hospital’s willingness to share information, are critical in decisions on VMI initiation or termination. Relatively stable demand products are preferred for a VMI approach. Hospitals may perceive risks in VMI adoption for medicines as it involves relinquishing control of critical supplies and may result in “lock-in” with a particular supplier.

Research limitations/implications

The cases have been conducted in one country, which may affect generalization of the findings. Wider empirical evidence from other countries in both developed and less developed regions will be beneficial.

Practical implications

VMI is advocated as being beneficial in many supply contexts. However, it is challenging to implement. The study identifies factors that affect the adoption of VMI for hospital pharmaceuticals and provides guidance on initiating VMI in a hospital context.

Social implications

The potential for VMI in public health projects to enable greater access to critical medicines is highlighted.

Originality/value

The paper provides supply side and demand side perspectives on VMI adoption in an important sector. It highlights the need for greater understanding of the perceived and actual risks in VMI from the perspective of both the hospital and the supplier and for much clearer advice on which pharmaceutical products are appropriate for VMI control in a hospital context.

Details

The International Journal of Logistics Management, vol. 28 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 14 August 2007

Kazim Sari

The purpose of this paper is to explore the performance increase achieved by vendor managed inventory (VMI) under different levels of outside supply capacity, demand…

9571

Abstract

Purpose

The purpose of this paper is to explore the performance increase achieved by vendor managed inventory (VMI) under different levels of outside supply capacity, demand uncertainty, and lead time.

Design/methodology/approach

The study uses discrete event simulation to explore the performance increase achieved by VMI under different supply chain scenarios.

Findings

The analysis suggests that when implementing a VMI program, the capacity restrictions of suppliers have to be taken into consideration even though they have not participated in the program. Furthermore, the results also show that unless the retailer provides additional information to the distributor to resolve the uncertainty, higher levels of uncertainty in market demand create significant reductions in the savings realized by VMI. Finally, this study proves that, regardless of lead time horizons, VMI provides nearly the same level of performance increase as long as the ratio of the retailer's lead time to that of the supplier's remains constant.

Practical implications

This analysis provides a means for practitioners to understand the impact of various environmental and operational factors on the performance increase achieved by VMI so they can better analyze their specific business conditions to prepare their organizations for more successful VMI programs.

Originality/value

Although there is a range of research focusing on VMI, only a few of those have tried to identify the factors that play an important role in the failure of VMI programs. While extending the current literature, this is the first study to explore the impact of outside supply capacity on the performance improvements achieved by VMI.

Details

International Journal of Physical Distribution & Logistics Management, vol. 37 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

1 – 10 of over 5000