Title page for ETD etd-01092004-140737

Type of Document Master's Thesis
Author Gandhi, Ujval
Author's Email Address ugandhi@vt.edu
URN etd-01092004-140737
Title Vendor Managed Inventory: A new approach to supply chain management
Degree Master of Science
Department Industrial and Systems Engineering
Advisory Committee
Advisor Name Title
Koelling, Charles Patrick Committee Chair
Taylor, Robert E. Committee Member
Van Aken, Eileen M. Committee Member
  • Supply Chain Management
  • Collaborative Forecasting
  • Vendor Managed Inventory
  • Performance Measurement
Date of Defense 2003-12-16
Availability unrestricted
The Global Supply Chain Forum (Stanford Global Supply Chain Forum Web Resource, http://www.stanford.edu/groups/scforum) defines supply chain management (SCM) as “Supply chain management is the integration of key business processes from end user through original suppliers that provides products, services and

information that add value for customer and other stakeholders”. The rapid development of the Internet has dramatically changed the traditional definitions of manufacturer, suppliers and customers. Newer approaches to supply chain management attempt to organize the supply chain as a network of cooperating intelligent agents, each performing one or more supply chain functions and each coordinating actions with one another.

This research is aimed at creating a viable model of a single manufacturer single supplier collaborative supply chain system using a Vendor Managed Inventory (VMI) system. The research further uses known inventory performance parameters to performance benchmark the VMI system with traditional push-pull systems, develop a collaborative forecasting spreadsheet solution and a best alternative ordering policy amongst EOQ, Monthly, JIT and VMI policies under known lead time and a variety of demand distribution functions.

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