Optimal Vendor-Managed Inventory Models for Single-Vendor Multiple-Retailer Supply Chains

  • Narayan C. NayakEmail author
  • Amar C. Mohanty
Conference paper
Part of the Lecture Notes on Multidisciplinary Industrial Engineering book series (LNMUINEN)


This research developed an analytical approach for a single-vendor multiple retailer’s vendor managed inventory system. In this paper, various factors like lead time, probability of producing defective items when process goes out of control, shipment size, and safety stock have been considered to modify the models available in earlier literature. Numerical models have been developed that helps in optimizing the total cost that may incur due to various factors at both vendor and retailer levels. Analysis has been carried out for single-vendor and multiple (four) retailers. The total cost that has been optimized is the summation of total vendor cost and total retailer cost. The condition under which each approaches may be preferred has been thoroughly discussed. Significant factors that influence the total cost of the system have been identified by means of various plots.


Supply chain Vendor-managed inventory Retailer Safety stock Economic order quantity Optimization 


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© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Department of Mechanical EngineeringIndira Gandhi Institute of Technology, SarangSarangIndia

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