Title :
A Dynamic (s, S) Replenishment Policy for Suppliers Engaged in VMI Agreement with Retailers
Author :
Liu, Lanjuan ; Zhou, Xinyan
Author_Institution :
Shanghai University of Finance and Economics, 777 Guoding Road, Shanghai, China 200433
Abstract :
Using a rule-based decision making approach, this paper proposes a dynamic (s, S) replenishment policy for suppliers who practice VMI with their retailer customer. The relationship between the supplier overall cost and replenishment decision variables are explored through Monte Carlo simulation coupled with sensitivity analysis. The advantage of the proposed dynamic (s, S) policy is demonstrated through parallel comparison of different replenishment policy schemes. The paper discusses the application of dynamic (s, S) replenishment policy in the scenario of perishable goods and in the scenario of supply chain process with long lead time.
Keywords :
Computer simulation; Costs; Decision making; Finance; Inventory management; Optimization methods; Sensitivity analysis; Stochastic processes; Supply chain management; Supply chains; Computer Simulation; Dynamic Replenishment Policy; Supply Chain Management; Vendor Managed Inventory;
Conference_Titel :
Service Operations and Logistics, and Informatics, 2007. SOLI 2007. IEEE International Conference on
Conference_Location :
Philadelphia, PA, USA
Print_ISBN :
978-1-4244-1118-4
Electronic_ISBN :
978-1-4244-1118-4
DOI :
10.1109/SOLI.2007.4383926
