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Published in:
2016 | OriginalPaper | Chapter
Collaborative Supply Chain Configurations: The Implications for Supplier Performance in Production and Inventory Control
Authors : Jan Holmstrőm, Johanna Småros, Stephen M. Disney, Denis R. Towill
Published in: Developments in Logistics and Supply Chain Management
Publisher: Palgrave Macmillan UK
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Changing how and when a supplier delivers a product can transform a business model (Hoover et al., 2001). Vendor managed inventory (VMI) is one such mechanism that has been popular in recent literature (Holmström, 1998; Sabath et al., 2001). Unfortunately, however, practical examples of how VMI and other collaborative supply chain configurations can be precisely used to improve production planning and inventory control in supplier firms are difficult to find in industry. For example, the scope of standard solutions for VMI in commercial enterprise resource planning applications does not include recommendations for linking the replenishment collaboration to production and inventory control.