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2008•Journal of Shanghai Lixin University of CommerceRequires access

The Study on the Change of Vendor's Cost in VMI System

Xujin Pu

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Abstract

Vendor managed inventory(VMI) is one of the important methods in supply chain management.Generally speaking,after VMI system has been introduced into the independent single retailer and single supplier,the retailer can improve its profit in both short-term and long-term.Howerer,the change of supplier's profit is uncertain.The vendor's cost will change dramaticaly after VMI introduced.The vendor will make decisions based on this change.This paper will make the further study on the change of vendor's cost after VMI based on the limits of the current literature.

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What this paper is about

Vendor managed inventory(VMI) is one of the important methods in supply chain management.Generally speaking,after VMI system has been introduced into the independent single retailer and single supplier,the retailer can improve its profit in both short-term and long-term.Howerer,the change of supplier's profit is uncertain.The vendor's cost will change dramaticaly after VMI introduced.The vendor will make decisions based on this change.This paper will make the further study on the change of vendor's cost after VMI based on the limits of the current literature.

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Available abstract

Vendor managed inventory(VMI) is one of the important methods in supply chain management.Generally speaking,after VMI system has been introduced into the independent single retailer and single supplier,the retailer can improve its profit in both short-term and long-term.Howerer,the change of supplier's profit is uncertain.The vendor's cost will change dramaticaly after VMI introduced.The vendor will make decisions based on this change.This paper will make the further study on the change of vendor's cost after VMI based on the limits of the current literature.

Key concepts: Vendor, Vendor-managed inventory, Business, Supply chain, Profit (economics), Operations management, Supply chain management, Industrial organization

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