Optimizing an integrated vendor managed inventory system for a single-supplier and two-retailer supply chain with continuous review policy and stochastic demand | |
| Author | Pathiranage, Bandara Pathiranage Supun Viraj |
| Call Number | AIT Thesis no.ISE-21-26 |
| Subject(s) | Inventory control--Management Supply chain management Stochastic control theory |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Industrial and Manufacturing Engineering |
| Publisher | Asian Institute of Technology |
| Abstract | Due to increasing competitiveness, the demand for movement of goods around the world has been increased and every manufacturer prospect is to deliver the products rapidly to the customer. Therefore, Vendor Managed Inventory is becoming an essential service in the global supply chain. Vendor Managed Inventory is a collaborative commerce initiative in which vendors can manage buyer inventory. Vendor managed inventory method is a widely discussed partnership initiatives which is a frequently used method to improve supply chain efficiency. Reducing inventory cost for both supplier and buyer and improving customer service level is the main objective of implementing a VMI system. In this research, VMI models with one vendor and two retailers under continuous review policy was tackled. A mathematical model was developed to deal with the case considering the lateral transshipment between two retailers while the demand is stochastic and lost sales are allowed. This model was developed to determine the optimal delivery quantities and the allocated safety stock of each retailer so as to minimize the total cost of the whole system. Sensitivity analysis and numerical experiments are conducted in order to analyze the effect of various input parameters on the optimal solutions. |
| Year | 2021 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Systems Engineering (ISE) |
| Chairperson(s) | Huynh Trung Luong |
| Examination Committee(s) | Pisut Koomsap;Mongkol Ekpanyapong |
| Scholarship Donor(s) | Asian Institute of Technology Partial Scholarship |
| Degree | Thesis (M. Eng.) - Asian Institute of Technology, 2021 |