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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.

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.

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.

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.

To highlight how vendor managed inventory (VMI) can be extended both upstream and downstream in the supply network to co‐ordinate the material and information flows among a number of different suppliers, manufacturing and distribution plants (“extended VMI”).

The research is based on data and information gathered during an in‐depth case study within the supply network co‐ordinated by GlaxoSmithKline, one of the world's leading research‐based pharmaceutical and healthcare companies.

Defines the peculiarities and the requisites of the extended VMI as to: the information flows supporting the relationships among the supply network members; the information systems, supporting the data collection, management, diffusion and elaboration; the performance monitoring system, highlighting the benefits for each supply network member as well as avoiding opportunistic behaviours.

The research intends to offer an original contribution to the stream of research on VMI, explaining the peculiarities and the requisites of the extended VMI. Future research should seek to consider the extended VMI in light of some supply chain management (SCM) practices which have emerged in recent years, such as collaborative planning, forecasting and replenishment. Moreover, a second research opportunity lies in investigating the mixes of SCM initiatives – among which is also the extended VMI – needing launch in a perspective of optimisation of the whole supply network.

The case reported here and the research findings should offer guidance for managers facing the decision‐making process concerning the implementation of the VMI both upstream and downstream in the supply network.

Most authors tend to consider VMI at the dyadic level, namely as an approach for managing materials and information flows between one or more customers and their immediate suppliers. Instead, this research adopts a supply network perspective, seeking to explain how VMI can be extended both upstream and downstream and considering the supply network as a whole rather than as a series of dyads.

Vendor managed inventory (VMI) is a model for supply chain collaboration gaining ground in multiple industries around the world. Forecasting is one of several means to predict future demand. The purpose of this paper is to identify what types of advance demand data would be valuable to the supplier for successful replenishment planning in cases of VMI, frequency and means of information exchange.

The work is based on a literature review and a multiple case study where both successful and unsuccessful VMI collaboration programs are studied. In all cases, the supplier or the customer was a manufacturer. The discussion is based on case‐observations of causes and effects that are compared with existing literature.

It is found that current inventory status and sales forecasts are the most important kinds of information to be made available to the supplier in a VMI relationship. This also conforms with the general perception of the literature review. Some kinds of information are found valuable while other kinds are found not to be of importance. It was also found that kinds of information differ with the type of supply chain activities being performed by the customer, i.e. there is a different kind of information recommended when the customer makes to stock than when he is a wholesaler or a manufacturer making to order. This observation has not been discussed in the literature reviewed.

The value of generalization from case studies is subject to general discussion. The cases applied in this research encompass Norwegian suppliers and dyads at the upstream end of the value chain. Geographically related cultural differences might limit the applicability of this work.

The findings support the existing literature and this paper takes a practitioner's perspective on information sharing. The aim is to offer a comprehensive yet educational view of information sharing and VMI.

The purpose of this paper is to define the standard structure of a vendor managed inventory (VMI) agreement, which can be used as a guideline for the early definition of the agreement.

Starting from an industrial application of relevance, the information flow and the technical details, which are to be defined before the operation startup, are identified and discussed. These data are used as the key points for the definition of the basic frame of the agreement. A particular emphasis is given to the “Technical Specification” and the “Service Level Agreement” sections.

It is shown that a VMI agreement should be arranged into parts dealing with the generic and legal sides of the agreement, whereas the technical aspects and the relation‐specific topics should be addressed in the annexes. This increases the flexibility of the agreement in that, as the VMI relationship evolves over time, changes will affect only the annexes leaving the main body of the agreement unaltered.

The proposed agreement has a flexible structure and can be easily adopted by the personnel involved to correctly define and implement VMI in several industrial fields.

By approaching VMI from a practical point of view, this paper identifies the main issues that must be covered in the agreement to fit the needs of both parties and to assure benefits on both sides.

This paper sets out to describe transform methods to control vendor‐managed inventory (VMI). It aims to examine the limits of modelling approaches within control‐theoretic models.

Modelling was achieved with the Simulink package using the equations developed by Disney and Towill for a two‐tier VMI system. Discrete and continuous models were considered together with two forms of production delays: a finite delay and the Forrester exponential delay. Standard control engineering analyses of these delay representations were compared to illustrate how the system response and stability depend on their formulation and to determine the permissible gains.

Response by a discrete or continuous model to step inputs in sales rates depends on the type of delay representation but the responses do not differ by more than 5 per cent if the same delay form is used in the models. The prime effect of using a finite delay is to deepen the stock‐out and increase the required order rate compared with the same response observed with the use of exponential forms of delay. Total time for recovery is similar with all models. It is shown that the continuous model with an exponential delay is always stable and when using a fixed delay the continuous model can be made stable.

The models presented here illustrate that the various forms of control‐theoretic models present similar results irrespective of technique used, provided that they have the same delay type. The range of gains for the required order rate can be computed for any VMI system, knowing that they can be designed to guarantee stable operation.

This work extends that of Disney and Towill to include different modelling representations. It allows operational gains to be safely chosen for stable operation.

The purpose of this paper is to present an operations model for retail replenishment collaboration and identifies its expected benefits and limitations for the members of a grocery supply chain.

A case study is conducted on a development project between a grocery wholesaler and two grocery product suppliers. Data are collected through semi-structured interviews with key respondents from four different companies.

Despite advances in collaborative practices in grocery supply chains, retail store replenishment management faces challenges. In particular, demand exceptions management is a challenge in the grocery industry. A replenishment model called Collaborative Buyer-Managed Forecasting (CBMF) creates a proactive planning approach and a platform for close collaboration in the supply chain. The centralised forecasting transforms retailer sales data into a plan which serves the whole supply chain by creating one-order forecast. The CBMF model facilitates efficient demand management, improves demand responsiveness and promotes better availability of products in retail stores.

CBMF provides a replenishment planning model for the whole supply chain. It is tested to a limited extent in one supply chain.

The study provides managers with a better understanding of the benefits of centralised forecasting and closer replenishment collaboration, especially during periods of exceptional demand.

A new approach for managing demand in grocery supply chains with centralised forecasting is provided.

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.

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.

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.

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.

Considers the concept of vendor‐managed inventory (VMI). Reviews its success since it was first implemented by Wal‐Mart and K‐Mart. Asserts that although a number of factors make the efficient operation of VMI difficult, the process is still relevant to supply chain management. The strategy is effective when the relationship between major retailers and major suppliers is constructive and open, and the party who is most able and in the best position to manage the supply relationship is in control of the supply chain.

To identify the key determinants of successful vendor managed inventory (VMI) and strategic supply chain relationships for industries characterised by oligopolistic competition.

The study used action research in the New Zealand (NZ) food industry supported by a literature review, triangulation and case studies from other industries and countries.

Seven key industry‐level factors impacting the success of VMI and strategic supply chain relationships were identified. These were integrated into a step‐wise framework that provides a path for practitioners to follow when establishing VMI and strategic supply chain relationships in the NZ food industry.

This research was conducted using action research in the NZ food industry; hence, the research findings may need to be modified and further adapted before applying to other, less concentrated, industries.

A step‐wise framework provides a path for practitioners to follow when establishing VMI and strategic supply chain relationships in the NZ food industry. Detailed practical guidelines are provided for practitioners who wish to improve the profitability of their supply chain.

The key outcome was a working model that identifies the key determinants of successful VMI and strategic supply chain relationships in the NZ food industry, at an industry‐level. A secondary outcome was the contribution to knowledge from an action research perspective.

The purpose of this paper is to develop an understanding of the nature of collaborative arrangements that partners in Australian hospital supply chains use to manage inventories.

A case study involving a supply chain network of ten healthcare organisations (three pharmaceutical manufacturers, two wholesalers/distributors and five public hospitals) was studied. Data included 40 semi‐structured interviews, site visits and examination of documents.

This study highlights the existence of a variety of collaborative arrangements amongst supply chain partners such as the “Ward Box” system (a variant of the vender managed inventory system) between wholesalers/distributors and hospitals. The materials management departments were more willing than their pharmacy counterparts to participate in a variety of partial and complete outsourcing arrangements with wholesalers/distributors and other hospitals. Several contingent factors were identified that influenced development of collaborative arrangements.

This study is limited to the Australian healthcare sector. To improve generalisability, this study could be replicated in other industry sectors and countries.

Application of collaborative arrangements between manufacturers and wholesalers/distributors would improve inventory management practices across the supply chains. Also, learning from materials management departments could be transferable to pharmacy departments.

Several contingent variables for the implementation of collaborative inventory management arrangements between healthcare supply chain partners have been identified. Methodologically, data across three echelons in the supply chains (manufacturers, wholesalers/distributors and hospitals) were collected and analysed.