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Supply Chain Integration in Vendor Managed Inventory

Journal of Supply Chain Management Systems

Volume 1 Issue 2

Published: 2012
Author(s) Name: Rajkumari Mittal, Habiba Abbasi, Sarla Pareek
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Abstract

This paper tries to find-out variations within different parameters of any industry’s supply chain. It shows impact on cost savings which can be analyzed by different approaches followed these days like Vendor managed Inventory (VMI), Just in time (JIT), synchronized VMI, etc. Outcome of this analytical paper describes that VMI may benefit the supplier and buyer both even when the supplier imposes some transportation cost upon the buyer. The demand is increasing function of time if they share the information on time with each other, with appropriate predefined trading conditions like, How much will be the ordering cost? , What will be the transportation cost policy?, What will be the ratio of profit distribution if they agree for these terms etc?

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