3 pages/≈825 words
Business & Marketing
log302mod1ca (Essay Sample)
Click HERE to link to the ProQuest data base or click directly on the journals below to locate and read the following articles related to Vendor Managed Inventories: Saxena, Rajiv (2009 Jul) Vendor Managed Inventory, Industrial Engineer, Norcross: Vol. 41, Iss7, pg. 20 Wheatley, Malcom (2008 Apr) Automating Vendor Managed Inventory in the Ultracompetitive Papermaking Industry, Manufacturing Business Technology, Highlands Ranch: Vol. 26, Iss. 4, pg 20 Brand, David (2009 Sep) Supply Chain Dream Comes True, Industrial Engineer, Norcross: Vol. 41, Iss. 9, pg. 52 After reading the above articles answer the following questions in a 3-4 page paper: Discuss the decision criteria that should be considered when assessing the pros and cons of entering into a Vendor Managed Inventory arrangement with major suppliers? Does a Vendor Managed Inventory system support a "lean" approach to supply chain management? Explain! Has globalization of supply chains encouraged or discouraged Vendor Managed Inventories? Why is information technology such an important element when entering into a VMI agreement? Explain using examples from Eka Chemicals and Interfast. Submit your assignment to CourseNet for grading by the end of this module Assignment Expectations It is anticipated that the paper will demonstrate critical thinking skills, clarity of thought, and breadth of understanding in addressing the role of inventory management in an organization. Expectations focus on the work showing an understanding of how effective inventory management benefits an organization and why it is important to optimize the turnover rate. Specific elements of the assignment assess if the work exhibits critical thought, analytical thinking, and logic skills in determining how and if a Vendor Managed Inventory is a feasible option for achieving effective inventory management objectives. source..
VENDER MANAGED INVENTORY Name: Grade Course: Tutor`s Name: (15 April 2011) Vender Managed Inventory The use of Vender Managed Inventory (VMI) is gaining acceptance by manufacturers, distributors, producers and retailers in many industries. Initially, everyone tried it as an experiment but currently, it is preferred globally. Vender Managed Inventory is a way of optimizing supply chain performance where the manufacturer maintains the distributors inventory levels (Brand, 2009). The manufacturer can access the information about distributor`s inventory making him able to make purchase orders. If the manufacturer realizes that the inventory levels are dropping, he make a purchase order and ships the goods to the distributor. The manufacturer can view the stock that the distributor carriers and the point of sale data. Therefore, he creates the inventory plan and generates the order. Many factors should be considered before arranging the partnership between the distributor and the manufacturer regarding VMI. The benefits of such an arrangement are many. There are benefits that accrue to both the distributor and the manufacturer. There are also benefits that are specific to the distributor and to the manufacturer. Apart from this, there are losses, which might occur in such an arrangement. This calls for critical analysis of the several factors before any serious decision is made. Benefits. The manufacturer receives information about distributor`s sales hence he is able to tell his stock level (Saxena, 2009). This information is normally passed via electronic data such as (electronic data interchange) EDI or the internet. The probability of incorrect data is reduced as communication is from computer to computer. The relationship between the manufacturer and the distributor is improved as they work closer together hence strengthening ties between them. The two are also provide...
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