Analysis of Replenishment Policy Options in VMI Systems with Emission Related Cost

Mateen Arqum () and Chatterjee Ashis K
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Mateen Arqum: Indian Institute of Management Kozhikode
Chatterjee Ashis K: Indian Institute of Management Calcutta

No 186, Working papers from Indian Institute of Management Kozhikode

Abstract: Organizations are actively trying to incorporate sustainability considerations in their strategic and operational decision making. Recent studies suggest that business process redesign offers a promising avenue for meeting business goals. In this paper, we build on some recent studies that have shown that vendor managed inventory based supply chain coordination not only leads to cost savings, but also is a very useful tool in reducing greenhouse gas emissions. Both operational and emission related costs are incorporated in such models. We present different ways of structuring the replenishment policy and show that each of the policies leads to different performance outcomes. Furthermore, we also discuss how these policies can be used to cater to the strategic imperatives facing an organization. Implications for proper design of government legislation have also been discussed.

Keywords: Coordination; VMI; consignment; emissions; environment. (search for similar items in EconPapers)
Pages: 24 pages
Date: 2015
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