Paper Info
Title
On contracts for VMI program with continuous review (r, Q) policy
Abstract
Based on continuous review (r,Q) policy, this paper deals with contracts for vendor managed inventory (VMI) program in a system comprising a single vendor and a single retailer. Two business scenarios that are popular in VMI program are “vendor with ownership” and “retailer with ownership”. Taking the system performance in centralized control as benchmark, we define a contract “perfect” if the contract can enable the system to be coordinated and can guarantee the program to be trusted. A revenue sharing contract is designed for vendor with ownership, and a franchising contract is designed for retailer with ownership. Without consideration of order policy and related costs at the vendor site, it is shown that one contract can perform satisfactorily and the other one is a perfect contract. With consideration of order policy and related costs at the vendor site, it is shown that one contract can perform satisfactorily and the performance of the other one depends on system parameters.
Year
DOI
Venue
2010
10.1016/j.ejor.2010.04.037
European Journal of Operational Research
Keywords
Field
DocType
Supply chain management,VMI program,(r,Q) policy,Contract,Ownership
Vendor finance,Vendor-managed inventory,Revenue sharing,Private sector,Vendor,Supply chain management,Contract management,Mathematics,Operations management,Input/output (C++)
Journal
Volume
Issue
ISSN
207
2
0377-2217
Citations 
PageRank 
References 
12
0.60
17
Authors
2
Name
Order
Citations
PageRank
Ruoxi Guan1151.33
Xiaobo Zhao211716.07