Record Details

BENEFITS OF CPFR AND VMI COLLABORATION STRATEGIES: A SIMULATION STUDY

Journal of Operations and Supply Chain Management

View Archive Info
 
 
Field Value
 
Title BENEFITS OF CPFR AND VMI COLLABORATION STRATEGIES: A SIMULATION STUDY
 
Creator Kamalapur, Raj; University of Wisconsin Oshkosh
Lyth, David; Western Michigan University
Houshyar, Azim; Western Michigan University
 
Subject CPFR, VMI, Collaboration Strategy, Simulation Modeling, Inventory Management
 
Description This study provides managerial insight to pursue Collaborative Planning Forecasting and Replenishment (CPFR) or Vendor Managed Inventory (VMI) strategy for both the retailer and manufacturer under different supply chain settings. Discrete event simulation is used to investigate the cost benefits of CPFR and VMI strategies over Traditional Supply Chain (TSC) in a variable demand environment. The conceptual model is a two-echelon production-inventory system with a manufacturer and a retailer. The results from this study suggest that when compared to TSC, both VMI and CPFR achieve cost benefits in inventory management for both the manufacturer and retailer. Under most supply chain settings, higher cost benefits are achieved in CPFR compared to VMI. Also, CPFR achieves higher cost benefits when demand variability is high, production capacity is low, backorder penalty cost is high and delivery lead time is long. However, when production capacity is high and delivery lead time is short, the cost benefits of CPFR and VMI are significantly lower.DOI: 10.12660/joscmv6n2p59-73URL: http://dx.doi.org/10.12660/joscmv6n2p59-73
 
Publisher FGV EAESP
 
Contributor —
 
Date 2013-12-23
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://bibliotecadigital.fgv.br/ojs/index.php/joscm/article/view/14068
10.12660/joscmv6n2p59-73
 
Source Journal of Operations and Supply Chain Management; Vol 6, No 2 (2013): July - December; 59-73
Journal of Operations and Supply Chain Management; Vol 6, No 2 (2013): July - December; 59-73
1984-3046
 
Language eng
 
Relation http://bibliotecadigital.fgv.br/ojs/index.php/joscm/article/view/14068/13018