[Alcoholic liver disease. II: Pathologic and clinical aspects (author's transl)].
Author(s)
H Iturriaga
Date Issued
1 de enero de 1978
Type
Article
Volume
106
Issue
1
Start Page
52
End Page
57
Abstract
We consider a multi-product serial two echelon inventory system with stochastic\ndemand. Inventories at the downstream location are replenished periodically using\nan automatic ordering system. Under vendor managed inventory strategies the\nupstream stage is allowed to adapt these orders in order to benefit from economies\nof scale. We propose three different VMI strategies, aiming to reduce the order\npicking cost at the upstream location and the transportation costs resulting in\nreduced total supply chain costs. In a detailed numerical study the VMI strategies\nare compared with a retailer managed inventory strategy for two different demand\nmodels suitable for slow moving products. It is shown that if inventory holding\ncosts are low, compared to handling and transportation costs, efficiencies at the\nwarehouse are improved and total supply chain costs are reduced.