Vendor managed inventory model in a supply chain with single vendor and multiple retailers considering price and shelf space aspects

Mansureh Mohammadi and Mohammad Reza Gholamian

International Journal of Logistics Systems and Management, 2024, vol. 49, issue 3, 291-311

Abstract: Coordination decisions in the supply chain is challenging especially for manufacturers who are looking for a minimum cost and reaching to maximum profit. There are many policies for achieving coordination and integration in supply chain. Vendor managed inventory (VMI) is one of the most practical policies in this area. In VMI, retailers share their inventory data with a vendor and instead, vendor manages the retailers' inventory level through the provided information. In this study, a new VMI model with price- and shelf space-dependent demand has been presented. Meanwhile, role of brand and promotional effects have been considered in this demand function. The general research method employed in the study, is based on mathematical modelling and numerical analysis. In this regard, a supply chain with one manufacturer and two retailers has been examined. Numerical results show the performance improvement of the supply chain, by means of revenue-sharing contract in VMI policy.

Keywords: vendor managed inventory; VMI; shelf-space; brand image; advertising; revenue-sharing contract; Stackelberg game. (search for similar items in EconPapers)
Date: 2024
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