- Title
- A Dynamic Lot Sizing Model Under Vendor Managed Inventory (VMI)
- Creator
- Evazabadian, Farshid; Berretta, Regina; Heydar, Mojtaba
- Relation
- Data and Decision Sciences in Action 2 :Proceedings of the ASOR/DORS Conference 2018. Proceedings of The Australian Society of Operations Research (ASOR) conference and Defence Operations Research Symposium (DORS) (Melbourne 3-12-2018) p. 3-15
- Publisher Link
- http://dx.doi.org/10.1007/978-3-030-60135-5_1
- Publisher
- Springer
- Resource Type
- conference paper
- Date
- 2021
- Description
- This paper explores the impact of Vendor managed inventory (VMI) on a decentralized supply chain by proposing two Mixed-integer linear programming (MILP) models for a dynamic lot sizing problem. The models describe the decision-making for lot sizing before and after the implementation of VMI. The proposed models highlight that VMI takes advantage of centralized decision-making, and can reduce the cost of the lot sizing by better synchronization of the decisions. Numerical results, provided to compare the efficiency of VMI with the traditional decentralized lot sizing, indicate significant cost reduction under VMI. A set of experiments is also designed to determine the impact on retailers’ cost (ordering and holding) as well as vendors cost (setup and holding) on the gap.
- Subject
- vendor managed inventory; retailer managed inventory; lot sizing; mixed-integer linear program
- Identifier
- http://hdl.handle.net/1959.13/1473585
- Identifier
- uon:49064
- Identifier
- ISBN:9783030601355
- Language
- eng
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