1 AIT Asian Institute of Technology

Vendor–managed inventory policies for one vendor-one retailer and one vendor-multiple retailers supply networks

AuthorPramudyo, Cahyono Sigit
NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Engineering in Industrial and Manufacturing Engineering
PublisherAsian Institute of Technology
AbstractInformation sharing is useful for improving supply chain performance. Supply chain members consider information as their competitive advantage. Vendor and retailer usually prefer to keep their own information. Hence, exchange of information on demand and inventory level between them is not easily occurred. To deal with that, Vendor Managed Inventory (VMI) can be applied to tackle this problem. It has been observed that the use of VMI can help to reduce the total cost of the system and to improve the service level of the customer. However the development of VMI models for one vendor-one retailer and one vendor-multiple retailers supply system under stochastic demand has not been addressed adequately in the existing literature. In this research, we firstly develop a VMI model for one vendor-one retailer supply network using periodic review (, ) inventory policy at retailer. Then a VMI model for the same supply network is developed for the case when continuous review (, ) policy is employed at retailer. Lastly, the first VMI model is extended to the supply network with one vendor and multiple retailers. Due to the complexity of the developed models, genetic algorithm is employed to help obtain optimal solutions of the proposed models. For more details, genetic algorithm is used to find the optimal solution for the model of one vendor and one retailer system under stochastic demand using (, ) policy. For the other models using (, ) policy, simulation-optimization in combination with genetic algorithm is used to obtain optimal solutions. The applicability of the developed models is illustrated through numerical experiments. To examine the effects of the parameters in the model, sensitivity analysis are also conducted.
Year2017
TypeDissertation
SchoolSchool of Engineering and Technology (SET)
DepartmentDepartment of Industrial Systems Engineering (DISE)
Academic Program/FoSMicroelectronics (ME)
Chairperson(s)Huynh Trung Luong;
Examination Committee(s)Bohez, Erik L. J.;Mongkol Ekpanyapong ;Soni, Peeyush;Yuan, Xue-Ming;
Scholarship Donor(s)Ministry of Religious Affairs Republic of Indonesia
DegreeThesis (Ph. D.) -- Asian Institute of Technology, 2017


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