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Author: | Cheung, K. L. Lee, H. L. |
Title: | The Inventory Benefit of Shipment Coordination and Stock Rebalancing in a Supply Chain |
Journal: | Management Science
2002 : FEB, VOL. 48:2, p. 300-306 |
Index terms: | INVENTORIES STOCKS SUPPLY CHAIN MANAGEMENT SUPPLY ANALYTICAL REVIEW |
Language: | eng |
Abstract: | In this paper, the authors examine two information-based supply-chain efforts that are often linked to Vendor- Managed Inventory (VMI) programs. Specifically, the authors consider a supplier serving multiple retailers located in a close proximity. The first effort uses information on the retailers' inventory positions to coordinate shipments from the supplier to enjoy economies of scale in shipments, such as full truckloads. The second effort uses the same information for eventual unloading of the shipments to the retailers to rebalance their stocking positions. The author answers the following questions: how much benefit the authors gain from such initiatives, what are the relative benefits of the two initiatives and what are the drivers of such benefits. |
SCIMA