Implementation of a VMI production and distribution control system

Vendor-managed inventory
Time benefit analysis
ERP
Case study
Implementation
2001
.Conference paper
International Symposium of Logistics, July 8-10, Saltsburg, Austria, 6 pages.
Author

S.M. Disney, J. Holmström, R. Kaipia, D.R. Towill

Published

July 10, 2001

Abstract

This paper is concerned with the implementation of VMI within a grocery supply chain. We use the Time Benefit analysis tool to identify the particular products most suitable for VMI control from within the suppliers product range. Practical issues concerning the production and distribution process are highlighted. A production and inventory control system is selected and refined and realised via a spreadsheet application. Necessary data for enabling VMI is collated and presented to the production planner by the existing supply chain ERP system and entered into the spreadsheet-based VMI DSS. The DSS then advises the production scheduler on production and distribution targets for both VMI and non-VMI customers. Herein we report on the design and installation of the VMI DSS within the real-world supply chain.