Title: Design of vendor managed inventory system for automotive company - a case study
Authors: S. Nagarajan; K. Ganesh; Mukesh Kumar Barua; A.T. Resmi; S.P. Anbuudayasankar
Addresses: Department of Mechanical Engineering, Vickram College of Engineering, Sivagangai, Enathi-653061, Tamilnadu, India. ' Supply Chain Management – Centre of Competence, McKinsey Knowledge Center India Private Limited, McKinsey & Company, Gurgaon-122002, Haryana, India. ' Department of Management Studies, Indian Institute of Technology, Roorkee, Pin-247667, UK, India. ' Institute of Public Enterprise (IPE), Osmania University Campus, Hyderabad-500007, Andhra Pradesh, India. ' Department of Mechanical Engineering, Amrita Vishwa Vidyapeetham, Coimbatore – 641112 Tamilnadu, India
Abstract: The practice of supply chain management has shifted the responsibility for inventory control to the vendors, leading to the concept of vendor managed inventory (VMI). In order to meet customer demands, vendors must ensure appropriate quantities of storages at the point of demand and must ensure optimal distribution plans that include routing of the distribution vehicles. This paper discusses a detailed literature review of VMI. Existing VMI model for an automotive company is studied in detail and the critical flaws in the present system are identified. This paper proposes information sharing methods, empirical model for supplier segmentation and proposed VMI system with necessary implementation steps for the case company.
Keywords: vendor managed inventory; VMI design; automotive VMI; information sharing; supplier segmentation; suplier integration; automobile industry.
International Journal of Management and Enterprise Development, 2012 Vol.12 No.2, pp.106 - 131
Published online: 06 Sep 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article