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The impact of vendor managed inventory on transport operations

Disney, Stephen Michael ORCID:, Potter, Andrew Thomas ORCID: and Gardner, Bernard Maples 2003. The impact of vendor managed inventory on transport operations. Transportation Research Part E Logistics and Transportation Review 39 (5) , pp. 363-380. 10.1016/S1366-5545(03)00014-0

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This paper investigates the impact of a vendor managed inventory (VMI) strategy upon transportation operations in a supply chain. Specifically, the issue of batching to enable better use of transport vehicles is studied. A system dynamics methodology is used to develop difference equation models of three scenarios––traditional, internal consolidation and VMI. The holistic nature of inventory management within VMI enables batching to minimise transport demand without negatively impacting the overall dynamic performance of the supply chain. Using the concept of cost escapability, it is shown that transport cost savings are possible in both the short and long term.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Uncontrolled Keywords: Transport ; Vendor managed inventory ; Supply chain dynamics ; Batching
ISSN: 1366-5545
Date of First Compliant Deposit: 30 March 2016
Last Modified: 08 Nov 2023 12:10

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