供应商管理库存VMI经济订货批量外文文献翻译译文3000多字.docx

供应商管理库存VMI经济订货批量外文文献翻译译文3000多字.docx

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供应商管理库存VMI经济订货批量外文文献翻译译文3000多字

文献出处：

KannanG,GrigoreMC,DevikaK,etal.AnanalysisofthegeneralbenefitsofacentralisedVMIsystembasedontheEOQmodel[J].InternationalJournalofProductionResearch,2013,51

（1）:

172-188.

AnanalysisofthegeneralbenefitsofacentralisedVMIsystembasedontheEOQmodel

G.Kannan,M.C.Grigore,K.Devika &A.Senthilkumar

Abstract：

Withinavendor-managedinventory（VMI）agreement,theupstreamsupplychainmember（thevendor）takesresponsibilityformanagingtheinventoryofthedownstreammember（thecustomer）withinspecificlevelspreviouslyagreeduponwithouttheneedofordersfromthecustomersidetobeplaced.Therefore,thevendorcanfocusonoptimisingproductionefficiencyandcapacityplanning,whilethecustomerhastoimproveforecastaccuracy.ThispaperanalysesthebenefitsaVMIagreementcouldbringforaone-supplier,multiple-customercasethroughanalysingtwocases:

asupplychainmanagedinatraditionalmannerandVMIwhenboththevendorandthecustomersbelongtothesameorganisation.Theanalysisisbasedontheeconomicorderingquantity（EOQ）formulaanditsrelatedtotalcost,andthenoveltyiscapturedbyevaluatingonevendor,multiplebuyers,andmultipleproductsituations.Themodellingisdonesoastocapturetheneedsandfactorswhichoccurwithinthepharmaceuticalindustryandanumericalapplicationwillbeexecutedwithdatafromoneofthemainleaderswithinthepharmaceuticalfield.

Keywords：

Traditionalsupplychain, VMIsupplychain, GeneralbenefitsbasedonEOQmodelling

1.Introduction

Duetotheglobalexpansionoflargecompanies,competitionallovertheworldisbecomingstrongerandthereforeanincreasingneedtoobtaincompetitivepricesispushingindustriestotakeonnewchallenging,strategicmethods.Oneoftherecentlyrecognisedmethodsisthereplacementofthetraditionalsupplychainwiththevendor-managedinventory（VMI）supplychain.IthasbeenproveninmanydifferentpapersthattheVMIsupplychainissuperiortothetraditionalsupplychainandcanbringsignificantcostsavingstotheparticipants.

Atraditionalsupplychainreferstothesystemwithinwhicheachofthemembersatthedifferentstagesmakedecisionsregardingreplenishmentquantitiesandtimingsoastominimisecostattheirendofthesupplychain.Thesupplychainusuallyconsistsofallstages,startingattherawmaterialsupplierandcontinuingonuntilthefinishedproductreachestheendcustomer.Allthedifferentstagesarelinkedbytheircommonaimofprovidingtherightproducttotherightcustomerinthepromisedtime.

VMIisareplenishmentsupplychaintechniquethathasbeenimplementedsincethebeginningofthe1980sbyWall-MartandProcter&Gamble（Waller et al. 1999）,andhasitsrootsbackin1958whenMagee（1958）firstintroducedtheconcept.

WithinaVMIagreement,theupstreamsupplychainmember（thevendor）takesresponsibilityformanagingtheinventoryofthedownstreammember（thebuyer）withinspecificlevelspreviouslyagreeduponwithouttheneedforordersfromthecustomersidetobeplaced.Therefore,thevendorcanfocusonoptimisingproductionefficiencyandcapacityplanning,whilethecustomerhastoimproveforecastaccuracy.

ThesuccessofVMIisdependentoncommunicationbetweenthepartners,theirwillingnesstosharedata,collaborationandcoordination,andaninformationtechnologysystemwhichenablesfastaccesstocriticalinformation（DuchessiandChengalur-Smith 2008）.

ThegeneralcharacteristicsofatraditionalsupplychainandofaVMIsupplychain,formedbythreestage.

TheresearchhereismeanttoofferasimpleoverviewofthepossibleoutcomesafterVMIimplementationinatwo-stagesupplychain,betweenthevendoranditsmultiplebuyers.Theanalysisfocusesontheoverallsupplychaincostimpact,whichVMIcanshowunderspecificconditions,basedonthepracticalexperiencelearnedinthepharmaceuticalindustry.

UsingVMIinasupplychainbringstransparencyregardingessentialinformationamongthepartners,thusgivingtheopportunityateachstagetoadjustthedecisionsinatimelymannerandavoidemergencysituations.

TheVMIsupplychainimpliescoordinationbetweenthepartneringstages,continuousinformationsharing,andregularmeetingswherecriticalissuesarediscussedandfollow-upactionsarenoted.

Thegeneralbenefitsmodelanalysedinthispaperisbasedontheeconomicorderingquantity（EOQ）modelandisanextensionofBookbinder et al.'s（2010）paper.Asanextensionoftheaforementionedwork,themodelhasbeenadjustedtointegratedifferentrequirementsandconstraintsfromwithinthepharmaceuticalindustry.Ithasbeenfurtherextendedfromanalysingaone-vendor,one-buyerdeterministicdemandcasetoanalysingaone-vendor,multiple-buyerstochasticdemandcase.

Themathematicalmodelappliestotwoechelons,thevendoranditsmultiplebuyers.Anobservationismadeheretodistinguishthatthebuyersarenottheend-consumersbutrepresentsalesorganisationsfromeachcountry.Atthesametimeboththevendorandbuyersbelongtothesameorganisation.

Intheliterature,oneofthemainchallengeswhenimplementingVMIhasbeenidentifiedinprovidingtherightincentivesforallpartnerstodotheirbestforthesupplychainandtherightcontracttosharetheoverallprofits（NagarajanandRajagopalan 2008）.

Thefactthatbothstagesbelongtothesameorganisationfacilitatessimplerdevelopmentsfurther.ThereisnoneedforcomplicatedcontractsforprofitsharingbetweenthetwopartnersinaVMIcase,asthemostimportantthingisthetotalsupplychainprofit.Itcanbeassumedthatbothpartnershavetherightincentivestoincreaseoverallsupplychainprofits.

Basedontheassumptionsabove,thetraditionalsupplychainmodelisdevelopedaccordingtoitsgeneralcharacteristicswithinwhichthecentralisedorganisationdoesnotshowanyimpact,whiletheVMImodelisdevelopedasandwhendecisionsaretakencentrallytoobtainoverallsupplychaincostreductions.

2. Literaturereview

Theliteraturereviewofthispaperisdividedintotwocategories:

first,anoverviewofgeneralpositivecharacteristicsobservedaftertheVMIimplementation（or）assumedtooccurbehindthetheoreticalmodelandthenthesecondpartlooksattheliteraturewhichclearlyfocusedontheEOQmodelingtodeterminethepotentialbenefitsofaVMIsupplychain.

2.1 GeneralcharacteristicsofVMIoutcomes

ThissectionverifiestheoutcomesofaVMIrelationshipandpresentsashortliteraturereviewofdifferentbenefitswhichhavebeenrecognisedbyotherauthorstobetheoutcomeofVMIpartnerships.AcoupleofarticleshavedirectlyaddressedthegeneralbenefitswhichcanbeachievedfromaVMIpartnershipwithoutnecessarilydevelopingamodeltoprovetheirargumentsbutthroughempiricalresearch.

Lee et al. （2008）analysedhowleansystemswouldperformwithVMI,CollaborativePlanning,ForecastingandReplenishment（CPFR）,andcontinuousreplenishmentandidentifiedthatexpensescanbesignificantlydecreasedandflexibilityimprovedunderVMI.Elvander et al. （2007）developedaframeworkforaVMIconfigurationwithfourcategories:

inventory-relateddimensions,information-relateddimensions,decision-makingdimensions,andasystemintegrationlevel.Dorling etal.（2006）evaluatedVMIunderoligopolisticcompetitionanddefinedfivestepstowardsVMIimplementation.Donget al. （2007）surveyedtheliteratureandidentifiedthatVMIisadoptedwhenthesupplierdealswithhighmarketcompetitivenessandwhenthereisgoodcooperationbetweenthesupplierandthebuyer.

Blatherwick（1998）,Disney et al. （2003）,andSari（2008）identifiedthatVMIcanbeoutperformedbyotherstrategiesinspecificsituations.

2.2 GeneralbenefitsmodelsofVMIbasedontheEOQmodel

TheliteraturereviewpresentedbelowfocusesstrictlyonresearchpaperswhichhavedevelopedspecificmodelstoevaluatethebenefitsofaVMIsupplychainbasedonEOQmodelling.

Bookbinder et al. （2010）,Yao et al. （2007）,andRazmi et al. （2010）evaluatedthesupplychaincostsunderatraditionalsupplychaincomparedtoaVMIsituation.Allcasesconsideredatwo-echelonmodelformedbyavendorandabuyer,andthemodeldevelopmentwasbasedontheEOQformula.

Bookbinder et al. （2010）comparedthreecases:

thetraditionalsupplychain,VMI,andcentraldecisionmaking.ThedifferencebetweentraditionalsupplychainsandVMIwasobtainedthroughtransferringthecostofplacinganorder,whichwasincurredbythebuyer,tothevendorundertheVMI.Also,thevendor'scostofplacinganorderhasbeenconsideredtobelowerthanthebuyer's.Oneofthefindingsofthemodelisthatboththevendorandthebuyerarebetteroffaslongasthevendor'sholdingcostsdividedbythebuyer'sholdingcostarehigherthantheorderingcost.

Yao et al. （2007）showedthattotalcostscanbedecreasedunderVMIaslongastheorderingcostofthevendorislowerthanthatofthebuyer.However,resultsalsoshowthatthebuyerhasgreaterbenefitsthanthevendor.

Razmi et al. （2010）effectuatedasensitivityanalysisbyvaryingtheparametervaluesofthetotalcostfunctionwhileincludingabackorderingcostinthecalculation.Whileinthetraditionalsupplychainmodelboththevendorandthecustomerincurredcosts,inthecaseofVMIallthecostshavebeenattributedtothevendor.Pasandideh etal. （2010）usedanEOQmodeltoevaluatetheimpactofdifferentparametersonthetotalcostwhenapplyingVMIandwhenshortageisbacklogged.TheEOQmodeldevelopedshowedthatVMIcouldbringimportantcostsavingsbutthishasitslimitationsonthevaluesoftheorderingcostsofthetwoparticipants.