Optimizing a vendor managed inventory system for a single-supplier and two-retailer supply chain with periodic review policy and stochastic demand considering customer market search behavior | |
| Author | Gusain, Rukesh |
| Call Number | AIT Thesis no.ISE-24-01 |
| Subject(s) | Inventory control--Mathematical models Stochastic analysis Consumer behavior |
| 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 | In today's competitive market, companies strive to reduce costs while maintaining customer satisfaction. Within the supply chain, inventory management has become a primary concern due to its significant impact on capital utilization. Consequently, Vendor Managed Inventory (VMI) has emerged as a successful technique to optimize inventory levels and mitigate associated costs. VMI operates as a collaborative agreement within the supply chain, empowering suppliers to oversee and optimize inventory according to the retailer’s needs. It is renowned for optimizing inventory costs while enhancing customer service levels. However, during regular business transactions with end consumers, instances of stock-outs may arise at the retailers. Should a retailer be unable to meet the demand, customers may engage in market search behavior by seeking the same product from other retailers. In this research, a VMI system with one supplier and two retailers under periodic review policy and with stochastic demands was studied. A mathematical model was developed to optimize the above-mentioned system considering the customer market search behavior. This model was developed to determine the optimal order quantities of the retailers so as to maximize the total profit of the whole system. Sensitivity analysis and numerical experiments were conducted in order to analyze the effect of each input parameter on the optimal solutions. |
| Year | 2024 |
| Type | Thesis |
| School | School of Engineering and Technology |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial and Manufacturing Engineering (IME) |
| Chairperson(s) | Huynh, Trung Luong |
| Examination Committee(s) | Manukid Parnichkun;Mongkol Ekpanyapong |
| Scholarship Donor(s) | His Majesty the King’s Scholarships (Thailand) |
| Degree | Thesis (M. Eng.) - Asian Institute of Technology, 2024 |