| Author | Jutamart Jomratchakom |
| Call Number | AIT Thesis no.ISE-24-18 |
| Subject(s) | Inventory control
|
| 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 | Vendor Managed Inventory (VMI) is a modern alternative inventory management strategy that allows vendors to oversee the entire replenishment process. Through information sharing between the members of the supply chain, vendors are able to determine appropriate order quantities for delivery to the retailer in an inventory replenishment cycle. This approach enables vendors to better meet customer demand. On the other hand, the retailer is able to reduce inventory costs and increase long-term trustworthy relationships with the customers, leading to greater customer loyalty and secured sales. It is obvious that VMI contributes to a win-win situation for all supply chain partners. This research advances this field by studying the development of an inventory model involving two vendors and one retailer under Vendor Managed Inventory (VMI) for two competing products. The objective of this research is to determine the optimal replenishment quantities for the vendors so that the expected total profit for the retailer is maximized. To make this research more realistic, an order-up to level inventory policy and lost sales policy when the customers’ demands cannot be fulfilled are taken into account. The demand of both vendors will follow a Normal distribution. A mathematical model is developed to determine the optimal order quantities of two vendors with the aim to maximize the expected total profit for the retailer. Subsequently, numerical experiments and sensitivity analyses are conducted to observe the impacts of input parameters on order quantities of both vendors and the expected total profit per time unit. The conclusion identifies potential avenues for future research. |
| 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) | Mr. Boonkiat and Ms. Jintana Kovavisaruch Scholarship |
| Degree | Thesis (M. Eng.) - Asian Institute of Technology, 2024 |