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1 – 10 of 485
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

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 essential to…

3787

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. 4 no. 3
Type: Research Article
ISSN: 2631-3871

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 inventory

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 affect VMI

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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 uncertainty…

10172

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

Article
Publication date: 26 September 2008

Marloes J.T. Claassen, Arjan J. van Weele and Erik M. van Raaij

The purpose of this paper is to seek to investigate performance outcomes of vendor managed inventory (VMI) from a buyer's perspective and enablers for its successful application.

11252

Abstract

Purpose

The purpose of this paper is to seek to investigate performance outcomes of vendor managed inventory (VMI) from a buyer's perspective and enablers for its successful application.

Design/methodology/approach

Structural equation modelling through Partial Least Squares (PLS) is used to identify relationships between four enablers (information systems, information sharing, information quality, and relationship quality), perceived VMI success, and three outcomes (cost reductions, customer service, and supply chain control).

Findings

Buyer‐perceived VMI success is impacted by the quality of the buyer‐supplier relationship, the quality of the IT‐system and the intensity of information sharing, but not by the actual quality of the information shared. Furthermore, VMI leads to three performance outcomes: higher customer service levels, improved supply chain control and, to a lesser extent, cost reduction.

Research limitations/implications

Although theory stipulates a positive impact of high quality information on the success of VMI, this study shows that the effect of information quality is limited in practice.

Practical implications

The results of the survey show that purchasing managers who invest in the relationship with their suppliers and a good IT infrastructure are more likely to get better results from a VMI implementation. Furthermore, this paper shows that while most managers expect major cost reductions when implementing VMI, benefits primarily come from improved service levels.

Originality/value

The study provides empirical evidence of why VMI in practice does not achieve all the benefits claimed in theory.

Details

Supply Chain Management: An International Journal, vol. 13 no. 6
Type: Research Article
ISSN: 1359-8546

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 supply…

2390

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: 15 February 2013

Sebastian H.W. Stanger

The purpose of this paper is to develop a generic framework for the assessment of VMI implementation. The framework is used for the analysis of multiple case studies in German…

1793

Abstract

Purpose

The purpose of this paper is to develop a generic framework for the assessment of VMI implementation. The framework is used for the analysis of multiple case studies in German hospitals to discuss the feasibility of VMI in the German blood supply chain.

Design/methodology/approach

The methodology is twofold. In a first step, the literature is reviewed and a generic theoretical VMI framework is developed. In a second step, the case study methodology is applied to 13 cases to assess the feasibility of VMI in the German blood supply chain.

Findings

The paper contributes a generic framework for assessing the implementation of VMI in seven steps. The research proposed that hospitals hesitate to enter a VMI relationship for critical resources such as blood. Hospitals fear losing control over critical resources.

Research limitations/implications

The unit of analysis is hospitals in Germany and the case studies do not target the suppliers in the supply chain. The paper contributes three propositions regarding VMI in the healthcare/blood supply chain.

Practical implications

A generic framework for assessing the applicability and feasibility of VMI is provided which supports managers with the implementation of VMI in a supply chain.

Originality/value

The paper is one of the first papers targeting inventory and supply chain management in the German blood supply chain. It provides a generic framework for the assessment of the feasibility of VMI.

Details

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

Keywords

Article
Publication date: 13 July 2015

Amir Hossein Niknamfar

The production-distribution (P-D) problems are two critical problems in many industries, in particular, in manufacturing systems and the supply chain management. In previous…

1975

Abstract

Purpose

The production-distribution (P-D) problems are two critical problems in many industries, in particular, in manufacturing systems and the supply chain management. In previous researches on P-D planning, the demands of the retailers and their inventory levels have less been controlled. This may lead into huge challenges for a P-D plan such as the bullwhip effects. Therefore, to remove this challenge, the purpose of this paper is to integrate a P-D planning and the vendor-managed inventory (VMI) as a strong strategy to manage the bullwhip effects in supply chains. The proposed P-D-VMI aims to minimize the total cost of the manufacturer, the total cost of the retailers, and the total distribution time simultaneously.

Design/methodology/approach

This paper presents a multi-objective non-linear model for a P-D planning in a three-level supply chain including several external suppliers at the first level, a single manufacturer at the second level, and multi-retailer at the third level. A non-dominated sorting genetic algorithm and a non-dominated ranking genetic algorithm are designed and tuned to solve the proposed problem. Then, their performances are statistically analyzed and ranked by the TOPSIS method.

Findings

The applicability of the proposed model and solution methodologies are demonstrated under several problems. A sensitivity analysis indicates the market scale and demand elasticity have a substantial impact on the total cost of the manufacturer in the proposed P-D-VMI.

Originality/value

Although the P-D planning is a popular approach, there has been little discussion about the P-D planning based on VMI so far. The novelty comes from developing a practical and new approach that integrates the P-D planning and VMI.

Details

Industrial Management & Data Systems, vol. 115 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 September 2003

Terrance L. Pohlen and Thomas J. Goldsby

Supplier managed inventory (SMI) and vendor managed inventory (VMI) have emerged as potential first steps towards successfully integrating activities and information across…

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Abstract

Supplier managed inventory (SMI) and vendor managed inventory (VMI) have emerged as potential first steps towards successfully integrating activities and information across multiple firms. Despite the potential benefits, managers interested in these programs often cannot generate the “buy‐in” among fellow management and executives or among those in the collaborative firm. The barriers stem from a misunderstanding of the concepts and an inability to demonstrate their potential effect on shareholder value across both firms. This paper draws a distinction between SMI and VMI and identifies where the approaches should be applied. A simultaneous economic value added (EVA) analysis from the customer and supplier perspectives is proposed as a means to demonstrate the effect on shareholder value, measure performance, and overcome the obstacles confronting implementation.

Details

International Journal of Physical Distribution & Logistics Management, vol. 33 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

1 – 10 of 485