Nash Game Model for Optimizing Market Strategies, Configuration of Platform Products in a Vendor Managed Inventory (VMI) Supply Chain for a Product Family

This paper discusses how a manufacturer and its retailers interact with each other to optimize their product marketing strategies, platform product configuration and inventory policies in a VMI (Vendor Managed Inventory) supply chain. The manufacturer procures raw materials from multiple suppliers to produce a family of products sold to multiple retailers. Multiple types of products are substitutable each other to end customers. The manufacturer makes its decision on raw materials’ procurement, platform product configuration, product replenishment policies to retailers with VMI, price discount rate, and advertising investment to maximize its profit. Retailers in turn consider the optimal local advertising and retail price to maximize their profits. This problem is modeled as a dual simultaneous non-cooperative game (as a Nash game) model with two sub-games. One is between the retailers serving in competing retail markets and the other is between the manufacturer and the retailers. This paper combines analytical, iterative and GA (genetic algorithm) methods to develop a game solution algorithm to find the Nash equilibrium. A numerical example is conducted to test the proposed model and algorithm, and gain managerial implications.supply chain management;nash game model;vendor managed inventory

Applying total cost of ownership for strategic procurement : three industrial case studies.

In this paper we elaborate on a Total Cost of Ownership supplier selection methodology that we have constructed using three real life case studies which are presented in this article. Analysing the value chain of the firm, data on the costs generated by the purchasing policy and on supplier performance are collected using Activity Based Costing (ABC). Since a spreadsheet cannot encompass all these costs, let alone optimise the supplier selection and inventory management policy, a mathematical programming model is used. Possible savings of between 6 and 14% are obtained for the three cases.Case studies; Studies;

A REPRISE OF SUPPLY CHAIN MANAGEMENT IN CONSANGUINITY TO THE INDUSTRY OF TEXTILE

This study investigates supply chain management (SCM) literature to categorize it as well as this study particularly explores studies of SCM for textile industry. An analysis is provided for SCM in connection to textile industry. Science Direct, ABI/INFORM Global, EBSCO Host, and Emerald scholarly databases are inspected for SCM studies. It is found that there is lack of agreement for a sole definition of SCM; moreover, textile industry is being neglected for investigation of SCM. However, categories of SCM are described in a descending order from most studied categories to least studied categories. There is a void of a sole definition for SCM; therefore, a comprehensive definition of SCM is suggested from pertinent literature. Moreover, research gaps are identified for future research of SCM particularly for textile industry.supply chain management, textile industry, categories of SCM

Stanford Linear Accelerator Center: A Chemical Management Services Case Study

The Chemical Management Services (CMS) program at Stanford Linear Accelerator Center (SLAC)was launched in August of 2005. In the first six months of the program, there were 170 users in 35 work areas requesting more than 1,600 different chemicals from a central ordering system provided by the CMS provider. The CMS provider exceeded the goals for on-time delivery and the program has reduced scrap and spoilage in inventory. Savings have already been realized in material purchase costs, inventory carrying costs, MSDS management, EHS labor, and annual hazardous material inventory activity

The adoption of vendor managed inventory for hospital pharmaceutical supply

The study investigates Vendor Managed Inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may affect VMI adoption. Multiple case studies are conducted involving five organizations (three hospitals, one distributor, and one manufacturer/ supplier). Four dyadic relationships are identified. Triangulation techniques are used in data collection, including interviews, site visits and document analysis to enhance reliability and validity. Case studies have been analyzed individually and comparatively. Two types of VMI initiatives – public and private sector - are identified in the supplier/hospital context. The public sector supplier focuses on improving service level while the private sector supplier seeks to strengthen relationships with key customers. Hospital characteristics, including the type of hospital, top management perspectives, and the hospital’s willingness to share information, are critical in decisions on VMI initiation or termination. Relatively stable demand products are preferred for a VMI approach. Hospitals may perceive risks in VMI adoption for medicines as it involves relinquishing control of critical supplies and may result in ‘lock-in’ with a particular supplier. The paper provides supply side and demand side perspectives on VMI adoption in an important sector. It highlights the need for greater understanding of the perceived and actual risks in VMI from the perspective of both the hospital and the supplier and for much clearer advice on which pharmaceutical products are appropriate for VMI control in a hospital context. VMI is advocated as being beneficial in many supply contexts. However, it may be challenging to implement. This study identifies a range of factors that affect the adoption of VMI in hospital pharmaceutical supply chains. The cases have been conducted in one country, which may affect the generalization of the findings. Wider empirical evidence from other countries in both developed and less developed regions will be beneficial

Collector Managed Inventory, A Proactive Planning Approach to the Collection of Liquids coming from End-of-life Vehicles

In this article we introduce Collector Managed Inventory (CMI) as the reverse logistics counter part of Vendor Managed Inventory (VMI).The collection company takes responsibility for the inventories of cores or materials to be recycled.Experience in forward supply chain management has shown the potential of VMI by bringing the coordination of transportation and inventory decisions to the same supply chain entity.Using information technology called telemetry, we are able to monitor inventory levels at distance.We introduce a proactive planning methodology based on two types of collection orders: must- and can-orders.Every collection period all must-orders have to be collected, while canorders are only collected if they can be combined beneficially with the must-orders.The routing problem is solved by a combination of route generation and set partitioning.The system is illustrated in a real-life case study for Auto Recycling Nederland on the collection of liquids coming from end-oflife vehicles, such as coolant and oil.In several scenarios the old reactive approach is compared to the proactive approach resulting in cost savings up to about 19%.supply;logistics;vehicle routine;distribution;information technology;inventory

Exploring Customers\u27 Perceptions of Third Party Maintenance, Repair, and Operating Programs

A survey of 25 industrial manufacturing organizations in the U. S. indicated that 70% of respondents experienced dissatisfaction with their outsourcing programs due to unfulfilled expectations, which caused negative continuance intentions. The purpose of this descriptive case study was to explore the experiences of customers who currently use 3PMRO outsourcing programs to determine what factors affect satisfaction levels in the Southern United States. The conceptual framework for this study was the expectancy disconfirmation paradigm, which connects consumer satisfaction level to the fulfillment of consumer expectations. Data were collected from interviews of 22 procurement professionals of maintenance, repair, and operating supplies; observations of 3PMRO supplier performance meetings; and the analysis of performance scorecard documents. Data were analyzed using pattern matching followed by thematic analysis. Three themes were identified through the data analysis that affected consumer satisfaction: inventory management services, utilization of outsourced labor resources, and total cost value of the 3PMRO program. According to results, satisfaction of 3PMRO consumers are based on the proper utilization of a 3PMRO program for the intended limitations of the organization, reduced MRO supply costs, improved inventory management strategies, and improved competitive advantage from the realignment of resources to focus on core competencies. Implications for positive social change include increased awareness of cradle-to-grave inventory management to prevent improper disposal of non-biodegradable materials into our environment

Nash Game Model for Optimizing Market Strategies, Configuration of Platform Products in a Vendor Managed Inventory (VMI) Supply Chain for a Product Family

This paper discusses how a manufacturer and its retailers interact with each other to optimize their product marketing strategies, platform product configuration and inventory policies in a VMI (Vendor Managed Inventory) supply chain. The manufacturer procures raw materials from multiple suppliers to produce a family of products sold to multiple retailers. Multiple types of products are substitutable each other to end customers. The manufacturer makes its decision on raw materials’ procurement, platform product configuration, product replenishment policies to retailers with VMI, price discount rate, and advertising investment to maximize its profit. Retailers in turn consider the optimal local advertising and retail price to maximize their profits. This problem is modeled as a dual simultaneous non-cooperative game (as a Nash game) model with two sub-games. One is between the retailers serving in competing retail markets and the other is between the manufacturer and the retailers. This paper combines analytical, iterative and GA (genetic algorithm) methods to develop a game solution algorithm to find the Nash equilibrium. A numerical example is conducted to test the proposed model and algorithm, and gain managerial implications

Nash game model for optimizing market strategies, configuration of platform products in a Vendor Managed Inventory (VMI) supply chain for a product family

This paper discusses how a manufacturer and its retailers interact with each other to optimize their product marketing strategies, platform product configuration and inventory policies in a VMI (Vendor Managed Inventory) supply chain. The manufacturer procures raw materials from multiple suppliers to produce a family of products sold to multiple retailers. Multiple types of products are substitutable each other to end customers. The manufacturer makes its decision on raw materials' procurement, platform product configuration, product replenishment policies to retailers with VMI, price discount rate, and advertising investment to maximize its profit. Retailers in turn consider the optimal local advertising investments and retail prices to maximize their profits. This problem is modeled as a dual simultaneous non-cooperative game (as a dual Nash game) model with two sub-games. One is between the retailers serving in competing retail markets and the other is between the manufacturer and the retailers. This paper combines analytical, iterative and GA (genetic algorithm) methods to develop a game solution algorithm to find the Nash equilibrium. A numerical example is conducted to test the proposed model and algorithm, and gain managerial implications. © 2010 Elsevier B.V. All rights reserved.postprin

Developing supply chain maturity

This study introduces an empirical model of supply chain maturity and assesses its impact upon performance. Findings suggest that supply chain maturity is multi-dimensional including the areas of planning, sourcing, making, delivering, new product development, and returning. Valid and reliable measures, scales and supply chain maturity constructs were formulated and significant positive links found with multiple objective performance measures. The supply chain maturity framework is thus concluded to be robust for answering questions relating to where a supply chain is in developmental terms and what may be done to continue improving upon the design. Possible areas for further research and implications for managers are also raised.Supply Chain Design; Supply Chain Coordination;