The Effect of Vendor Managed Inventory Implementation on production and distribution policies: A case study of Padideh Shimi Gharn Company

Publish Year: 1397
نوع سند: مقاله کنفرانسی
زبان: English
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GERMANCONF02_139

تاریخ نمایه سازی: 3 تیر 1398

Abstract:

Vendor managed inventory (VMI) is one of the most commonly used policies for inventory management in FMCG industries. Generally, in this policy, the manufacturer manages the inventory levels of business partners, using data provided by them. This study investigated the effects of VMI strategy on production and distribution policies at Padideh Shimi Gharn Company compared to current conditions (retailer managed inventory policy). For this purpose, the company s production and shipping data are collected from 2017-10-23 to 2018-01-21. The numerical experiments and analysis show that reducing logistic costs and inventory level, balancing the capacity and reducing waste in customers’ warehouses can be achieved by implementing this strategy. Also in this system, all supply chain members can be informed more quickly and so, it can help manufacturer to update and optimized its production and distribution planning by considering real situation.

Authors

Sadjad Khalesi

Department of Industrial Engineering, Amirkabir University of Technology, Tehran, Iran,

Majid Damirchi,

Production Planning and Warehouses Manager, Padideh Shimi Gharn Co., Tehran, Iran,

Mojtaba Kashani,

Department of Management, Tehran University, Tehran, Iran,

Fatemeh Hemmati

Department of Industrial Engineering, Amirkabir University of Technology, Tehran, Iran,