Title: Coordinated, orderless inventory replenishment for a single supplier and multiple buyers through electronic data interchange

Authors: Avijit Banerjee, Snehamay Banerjee

Addresses: Department of Management, Drexel University, Philadelphia, PA 19104, USA. ' Department of Management, Drexel University, Philadelphia, PA 19104, USA

Abstract: We develop an analytical model for a coordinated, orderless inventory system for the single product, single vendor, multiple purchasers case. Such a system is made practical by recent developments in electronic data interchange, for the exchange of information between trading partners. On the basis of the potential benefits of this technology, we propose a common cycle replenishment approach, where the supplier alone makes all replenishment decisions, without ordering on the part of the customers. Our model and concepts are demonstrated by a simple numerical example. We conclude that EDI-based inventory control can be attractive from economic, as well as other standpoints. Furthermore, this approach is consistent with and can be instrumental in moving towards just-in-time (JIT) inventory management.

Keywords: electronic data interchange; EDI; inventory control modelling; quality management; inventory replenishment; information exchange; just-in-time; JIT inventory management.

DOI: 10.1504/IJTM.1992.025726

International Journal of Technology Management, 1992 Vol.7 No.4/5, pp.328 - 336

Published online: 24 May 2009 *

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