The Impact Of Lean Manufacturing On Operational Performance Through Vendor-Managed Inventory And Supply Chain Practices

This study investigates the impact of lean manufacturing on operational performance through vendor-managed inventory and supply chain practices as the mediating variable. The study used the population of the manufacturing company domiciled in east Java, Indonesia. Data collection used a questionnaire designed with a five-point Likert scale. The study sample is 111 manufacturing companies from 5420 manufacturing companies domiciled in East Java. Data analysis used partial least square (PLS) technique using smarPLS software version 3.3. The result indicated that nine hypotheses developed were supported in this study. Lean manufacturing affects vendor-managed inventory, supply chain practices, and operational performance. Vendor�managed inventory and supply chain practices directly affect operational performance. Lean manufacturing indirectly improves operational performance through the mediating role of vendor-managed inventory and supply chain practices. This research provides a managerial implication on how to improve the operational performance in supply chain management. This study also could contribute to the current supply chain management theor

The central role of IT capability to improve firm performance through lean production and supply chain practices in the COVID-19 era

Today, global competition entails companies having an advantage in supply chain networks to pursue superior performance. This work examines the link between information technology (IT) capability with the firm performance by adopting a lean production approach, vendor-managed inventory, and supply chain practices. The study has surveyed the population of the manufacturing company in East Java, Indonesia, using a questionnaire with a five-point Likert scale. A total of 111 manufacturing companies (medium and large) were selected from 5420 manufacturing companies listed in the Industrial Department of East Java. The partial least square (PLS) technique was used to analyze the data, using the SmartPLS software version 3.3. Thirteen hypotheses in this study were developed to investigate. The result revealed that all hypotheses of direct relationship were supported. IT capability directly affects lean production, vendor managed inventory, and supply chain practices. Moreover, lean production, vendor-managed inventory, and supply chain practices improve firm performance. Further analysis also indicated that all hypotheses of indirect hypotheses were supported except hypothesis one hypothesis (H9). IT capability indirectly improves firm performance through lean production, vendor-managed inventory, and supply chain practices. The result provides insight for managers and policymakers on enhancing firm performance by improving its IT capability, adopting lean production, vendor-managed inventory, and supply chain practices. This research contributes to reinforcing the supply chain management theory

Optimisation of vendor-managed inventory systems

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Pengurangan Bullwhip Effect dengan Metode Vendor Managed Inventory

Information distortion caused PT Multi Sarana Indotani got higher demand than the distributor. Demand variability in each echelon of the supply chain (bullwhip effect) may occur due to lack of demand stability that the producer had difficulty in determining the amount of production. One of the collaboration methods that can be applied to overcome the information distortion as causes of the bullwhip effect is vendor managed inventory, where the needs of distributor and retailers monitored and controlled by the producer. In this case, vendor managed inventory applied to two echelons, producer, and distributor.

Leader-follower Game in VMI System with Limited Production Capacity Considering Wholesale and Retail Prices

VMI (Vendor Managed Inventory) is a widely used cooperative inventory policy in supply chains in which each enterprise has its autonomy in pricing. This paper discusses a leader-follower Stackelberg game in a VMI supply chain where the manufacturer, as a leader, produces a single product with a limited production capacity and delivers it at a wholesale price to multiple different retailers, as the followers, who then sell the product in dispersed and independent markets at retail prices. An algorithm is then developed to determine the equilibrium of the Stackelberg game. Finally, a numerical study is conducted to understand the influence of the Stackelberg equilibrium and market related parameters on the profits of the manufacturer and its retailers. Through the numerical example, our research demonstrates that: (a) the market related parameters have significant influence on the manufacturer’ and its retailers’ profits; (b) a retailer’s profit may not be necessarily lowered when it is charged with a higher inventory cost by the manufacturer; (c) the equilibrium of the Stackelberg equilibrium benefits the manufacturer.Stackelberg Game;Supply Chain;Vendor Managed Inventory

Vendor managed inventory performance in Malaysian manufacturing companies

The implementation of the Vendor Managed Inventory (VMI) in the Malaysian manufacturing sector can be viewed as a solution to mitigate the increment of operational costs and low performance in customer services. Many factors contributed to the performance of the VMI programme, but only a few attempts were made to determine the contribution of the VMI elements and the organizational factors on VMI performance; and the influence of the types of products in this relationship. The objectives of this study were to determine the relationship and to examine the impact of the VMI elements, the organizational factors on VMI performance, and the moderating effect of the types of products on the relationship between the VMI elements, the organizational factors and VMI performance. The study used the survey method. Data were tested from 101 manufacturing companies listed in the Federation of Malaysian Manufacturers. The findings from the Pearson Correlation test showed that inventory location, managerial commitment, decentralized decision- making, information- system capability and trust have significant and positive relationships with cost performance. Meanwhile, inventory location, demand visibility, inventorycontrol limits, managerial commitment, information- system capability, and trust have significant and positive relationships with service performance. In addition, the multiple regression analysis showed that demand visibility, inventory- control limits, inventory location, trust, and managerial commitment contribute to VMI performance. The hierarchical regression analyses revealed that the types of products have a significant moderating effect to warrant desirable performance from demand visibility, inventory location, inventory control limits, and inventory- ownership. Therefore, the implementation of VMI in the Malaysian manufacturing sector needs to share demand information, apply minimum and maximum limits for inventory control, locate storage locations near customer premises, establish trust, and provide sufficient managerial commitment to benefit from the VMI programme. This study also suggests that the application of inventory- control limits on innovative products would decrease the cost performance of VMI. Also, inventory- ownership by the supplier on functional products would decrease the service performance of VM