BENEFITS OF CPFR AND VMI COLLABORATION STRATEGIES: A SIMULATION STUDY

• Autor(a) principal: Kamalapur, Raj
• Data de Publicação: 2013
• Outros Autores: Lyth, David, Houshyar, Azim
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: JOSCM. Journal of Operations and Supply Chain Management
• Texto Completo: https://periodicos.fgv.br/joscm/article/view/14068
• topic: CPFR; VMI; Collaboration Strategy; Simulation Modeling; Inventory Management

This study provides managerial insight to pursue Collaborative Planning Forecasting and Replenishment (CPFR) or Vendor Managed Inventory (VMI) strategy for both the retailer and manufacturer under different supply chain settings. Discrete event simulation is used to investigate the cost benefits of CPFR and VMI strategies over Traditional Supply Chain (TSC) in a variable demand environment. The conceptual model is a two-echelon production-inventory system with a manufacturer and a retailer. The results from this study suggest that when compared to TSC, both VMI and CPFR achieve cost benefits in inventory management for both the manufacturer and retailer. Under most supply chain settings, higher cost benefits are achieved in CPFR compared to VMI. Also, CPFR achieves higher cost benefits when demand variability is high, production capacity is low, backorder penalty cost is high and delivery lead time is long. However, when production capacity is high and delivery lead time is short, the cost benefits of CPFR and VMI are significantly lower.DOI: 10.12660/joscmv6n2p59-73URL: http://dx.doi.org/10.12660/joscmv6n2p59-73