Title: A multi-attribute value theory to assess the benefits of vendor managed inventory
Authors: Camillo Loro; Riccardo Mangiaracina
Addresses: Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Piazza Leonardo da Vinci 32, Milano, Italy ' Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Piazza Leonardo da Vinci 32, Milano, Italy
Abstract: This paper aims to show the effect of the qualitative decision factors on the implementation of VMI solution in the grocery industry. The methodology used in the study is a combination of an analytical approach and empirical analysis. A multi-attribute value theory called simple multi-attribute rating theory was selected as a tool of analysis. This model was combined with the analytical hierarchical process to obtain a hybrid model to express subjective and objective decision-maker evaluations. Then, the empirical analysis was conducted to validate the research paradigm and to test the model generated. As a result, qualitative factors are considered essential elements for a supply chain collaboration project's success. For the literature, it is the first attempt to assess an analytical model combining both qualitative and quantitative factors for such a solution. For practitioners, the model may be used as a supporting tool for decision-making about VMI solution.
Keywords: vendor managed inventory; VMI; supply chain collaboration; grocery supply chain; multi-objective decision models.
DOI: 10.1504/IJISM.2021.117245
International Journal of Integrated Supply Management, 2021 Vol.14 No.3, pp.330 - 362
Received: 15 Dec 2020
Accepted: 10 Feb 2021
Published online: 24 Aug 2021 *