Optimization of quantity-based dispatching policy in a vendor managed inventory (VMI) environment

Weiqiang Pan; Wusi Li; Chongmi Gao; Yonghong Ma

Optimization of quantity-based dispatching policy in a vendor managed inventory (VMI) environment

Weiqiang Pan^*
, Wusi Li
, Chongmi Gao
, Yonghong Ma

^*Corresponding author for this work

School of Humanities and Social Sciences(School of Public Administration）

Beijing University of Chemical Technology

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

We describe a new inventory cost control model to avoid disadvantage of the traditional inventory control model, based on consignment amounts and the vendor managed inventory (VMI) model. By means of decomposition of the inventory cost, we derived an integrated expression of cost, then solved the expression by means of optimization, and finally obtained the optimized consignment amount, the optimized consignment time and the optimized operating cost. The results obtained can help companies achieve economies of scale, lower their costs and ultimately enhance their competitiveness.

Original language	English
Pages (from-to)	102-104
Number of pages	3
Journal	Beijing Huagong Daxue Xuebao (Ziran Kexueban)/Journal of Beijing University of Chemical Technology (Natural Science Edition)
Volume	36
Issue number	1
State	Published - Jan 2009

Keywords

Cost control model
Quantity-based dispatching
Vendor management inventory

Cite this

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abstract = "We describe a new inventory cost control model to avoid disadvantage of the traditional inventory control model, based on consignment amounts and the vendor managed inventory (VMI) model. By means of decomposition of the inventory cost, we derived an integrated expression of cost, then solved the expression by means of optimization, and finally obtained the optimized consignment amount, the optimized consignment time and the optimized operating cost. The results obtained can help companies achieve economies of scale, lower their costs and ultimately enhance their competitiveness.",

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Optimization of quantity-based dispatching policy in a vendor managed inventory (VMI) environment. / Pan, Weiqiang; Li, Wusi; Gao, Chongmi et al.
In: Beijing Huagong Daxue Xuebao (Ziran Kexueban)/Journal of Beijing University of Chemical Technology (Natural Science Edition), Vol. 36, No. 1, 01.2009, p. 102-104.

Research output: Contribution to journal › Article › peer-review

TY - JOUR

T1 - Optimization of quantity-based dispatching policy in a vendor managed inventory (VMI) environment

AU - Pan, Weiqiang

AU - Li, Wusi

AU - Gao, Chongmi

AU - Ma, Yonghong

PY - 2009/1

Y1 - 2009/1

N2 - We describe a new inventory cost control model to avoid disadvantage of the traditional inventory control model, based on consignment amounts and the vendor managed inventory (VMI) model. By means of decomposition of the inventory cost, we derived an integrated expression of cost, then solved the expression by means of optimization, and finally obtained the optimized consignment amount, the optimized consignment time and the optimized operating cost. The results obtained can help companies achieve economies of scale, lower their costs and ultimately enhance their competitiveness.

AB - We describe a new inventory cost control model to avoid disadvantage of the traditional inventory control model, based on consignment amounts and the vendor managed inventory (VMI) model. By means of decomposition of the inventory cost, we derived an integrated expression of cost, then solved the expression by means of optimization, and finally obtained the optimized consignment amount, the optimized consignment time and the optimized operating cost. The results obtained can help companies achieve economies of scale, lower their costs and ultimately enhance their competitiveness.

KW - Cost control model

KW - Quantity-based dispatching

KW - Vendor management inventory

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SN - 1671-4628

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EP - 104

JO - Beijing Huagong Daxue Xuebao (Ziran Kexueban)/Journal of Beijing University of Chemical Technology (Natural Science Edition)

JF - Beijing Huagong Daxue Xuebao (Ziran Kexueban)/Journal of Beijing University of Chemical Technology (Natural Science Edition)

IS - 1

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Optimization of quantity-based dispatching policy in a vendor managed inventory (VMI) environment

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Keywords

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