A buyer-vendor system with untimely delivery costs: Traditional coordination vs. VMI with consignment stock

Name: A buyer-vendor system with untimely delivery costs: Traditional coordination vs. VMI with consignment stock
Author: Çömez-Dolgan, Nagihan, Moussawi-Haidar, L., Jaber, M. Y.

İsim	A buyer-vendor system with untimely delivery costs: Traditional coordination vs. VMI with consignment stock
Yazar	Çömez-Dolgan, Nagihan, Moussawi-Haidar, L., Jaber, M. Y.
Basım Tarihi:	2021-04
Basım Yeri	- Elsevier
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	0360-8352
Kayıt Numarası	347fd6ee-a5d9-42b1-ad76-b1bfcb9a1d4c
Lokasyon	Management Information Systems
Tarih	2021-04
Notlar	University Research Board at the American University of Beirut ; Natural Sciences and Engineering Research Council of Canada (NSERC)
Örnek Metin	This paper investigates the impact of coordinating a two-level supply chain that consists of a single-vendor and a single-buyer in the presence of untimely delivery costs. Specifically, early and late deliveries outside an agreed-upon delivery window are penalized. We investigate the replenishment policies of the vendor and the buyer with and without coordination. We show that untimely deliveries increase the replenishment cycle of the buyer, whether it coordinates with the vendor or not. More importantly, under untimely deliveries, coordination has a noticeable impact on aligning the decisions of both players, which is shown to be much more valuable in decreasing total costs. Implementing a coordinated solution becomes beneficial when the vendor's penalty and holding costs are high, the delivery window is narrow, and the buyer's holding and ordering costs are low. Next, we compare the traditional replenishment coordination mechanism with a vendor-managed-inventory (VMI) mechanism with consignment stock (CS) under untimely deliveries. We compare two coordination mechanisms, VMI-CS and traditional, and show that VMI-CS outperforms the other when the delivery times are random, but not so when the conditions are deterministic.
DOI	10.1016/j.cie.2020.107009
Cilt	154

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A buyer-vendor system with untimely delivery costs: Traditional coordination vs. VMI with consignment stock

Yazar Çömez-Dolgan, Nagihan, Moussawi-Haidar, L., Jaber, M. Y.

Basım Tarihi 2021-04

Basım Yeri - Elsevier

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 0360-8352

Kayıt Numarası 347fd6ee-a5d9-42b1-ad76-b1bfcb9a1d4c

Lokasyon Management Information Systems

Tarih 2021-04

Notlar University Research Board at the American University of Beirut ; Natural Sciences and Engineering Research Council of Canada (NSERC)

Örnek Metin This paper investigates the impact of coordinating a two-level supply chain that consists of a single-vendor and a single-buyer in the presence of untimely delivery costs. Specifically, early and late deliveries outside an agreed-upon delivery window are penalized. We investigate the replenishment policies of the vendor and the buyer with and without coordination. We show that untimely deliveries increase the replenishment cycle of the buyer, whether it coordinates with the vendor or not. More importantly, under untimely deliveries, coordination has a noticeable impact on aligning the decisions of both players, which is shown to be much more valuable in decreasing total costs. Implementing a coordinated solution becomes beneficial when the vendor's penalty and holding costs are high, the delivery window is narrow, and the buyer's holding and ordering costs are low. Next, we compare the traditional replenishment coordination mechanism with a vendor-managed-inventory (VMI) mechanism with consignment stock (CS) under untimely deliveries. We compare two coordination mechanisms, VMI-CS and traditional, and show that VMI-CS outperforms the other when the delivery times are random, but not so when the conditions are deterministic.

DOI 10.1016/j.cie.2020.107009

Cilt 154