Vender Managed Inventory Model and its Control Approach

Abstract

This paper deals with the Vender Managed Inventory (VMI) supply chain. The VMI is a production and inventory control strategy where stock positions are well known throughout the supply chain for the purposes of setting production and distribution targets. In this paper, we will focus our attention on the control strategy based on a VMI model. In addition, simulation results will be provided in order to verify the effectiveness of the control strategy in the presentation.