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초록·키워드 목차

Purpose: This study investigates the influence of VMI on the supply chain performance over time. By examining each supply chain member’s ongoing performance, this study figures out how VMI allows the vendor to overcome the initial loss and eventually provides the benefit to every supply chain member. Research design, data, and methodology: The proposed mathematical model describes the supply chain system where a manufacturer and a retailer make the operational decisions to maximize their own profits. By using the numerical examples with arbitrary data, VMI and non-VMI are compared in terms of their profit changes over time. Results: The numerical analysis shows that VMI results in greater overall profits for both manufacturer and retailer than non-VMI, while the manufacturer make a loss in the early stage of VMI implementation. This study also examines the impacts of certain conditional factors on the performance of VMI. Conclusions: This study supports the idea that VMI leads to manufacturer’s initial loss but it brings greater profits to both manufacturer and retailer than non-VMI after all. In addition, the result of this study provides the managerial implications about the particular condition that allows VMI to achieve a significant financial performance improvement over non-VMI.

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