Effects of Yield and Lead-Time Uncertainty on Retailer-Managed and Vendor-Managed Inventory Management
Generally, there are various elements of uncertainty in a supply chain. In particular, uncertainties in lead time, demand, and yield are very important in the semiconductor industry. Higher uncertainty can lead to bullwhip effects that can undermine the performance of the entire supply chain. This s...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
IEEE
2019-01-01
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| Series: | IEEE Access |
| Subjects: | |
| Online Access: | https://ieeexplore.ieee.org/document/8922591/ |
| _version_ | 1818323684074455040 |
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| author | Soonkyo Lee Young Joo Kim Taesu Cheong Seung Ho Yoo |
| author_facet | Soonkyo Lee Young Joo Kim Taesu Cheong Seung Ho Yoo |
| author_sort | Soonkyo Lee |
| collection | DOAJ |
| description | Generally, there are various elements of uncertainty in a supply chain. In particular, uncertainties in lead time, demand, and yield are very important in the semiconductor industry. Higher uncertainty can lead to bullwhip effects that can undermine the performance of the entire supply chain. This study examines the relationship between uncertainty in the supply chain and the outcome of inventory replenishment policies. Specifically, we analyze the effects of well-known uncertainties on manufacturer production quantity and retailer order quantity decisions in a decentralized supply chain. In addition, we also analyze and compare the effects of these uncertainties for the retailer-managed inventory and the vendor-managed inventory policies. Using numerical experiments, a comparative analysis of the two alternatives is conducted to determine suitable options for improving supply chain performance. In general, the performance of vendor-managed inventory is better than that of retailer-managed inventory, but we observe from the numerical experiments that there exist circumstances under which retailer-managed inventory shows better supply chain performance. |
| first_indexed | 2024-12-13T11:16:36Z |
| format | Article |
| id | doaj.art-7dfd7d985ec544e38c8f93c74c52e483 |
| institution | Directory Open Access Journal |
| issn | 2169-3536 |
| language | English |
| last_indexed | 2024-12-13T11:16:36Z |
| publishDate | 2019-01-01 |
| publisher | IEEE |
| record_format | Article |
| series | IEEE Access |
| spelling | doaj.art-7dfd7d985ec544e38c8f93c74c52e4832022-12-21T23:48:36ZengIEEEIEEE Access2169-35362019-01-01717605117606410.1109/ACCESS.2019.29575958922591Effects of Yield and Lead-Time Uncertainty on Retailer-Managed and Vendor-Managed Inventory ManagementSoonkyo Lee0https://orcid.org/0000-0002-8340-825XYoung Joo Kim1https://orcid.org/0000-0002-4753-8815Taesu Cheong2Seung Ho Yoo3School of Industrial Management Engineering, Korea University, Seoul, South KoreaLogistics System Research Team, Korea Railroad Research Institute, Uiwang, South KoreaSchool of Industrial Management Engineering, Korea University, Seoul, South KoreaDivision of Interdisciplinary Industrial Studies, Hanyang University, Seoul, South KoreaGenerally, there are various elements of uncertainty in a supply chain. In particular, uncertainties in lead time, demand, and yield are very important in the semiconductor industry. Higher uncertainty can lead to bullwhip effects that can undermine the performance of the entire supply chain. This study examines the relationship between uncertainty in the supply chain and the outcome of inventory replenishment policies. Specifically, we analyze the effects of well-known uncertainties on manufacturer production quantity and retailer order quantity decisions in a decentralized supply chain. In addition, we also analyze and compare the effects of these uncertainties for the retailer-managed inventory and the vendor-managed inventory policies. Using numerical experiments, a comparative analysis of the two alternatives is conducted to determine suitable options for improving supply chain performance. In general, the performance of vendor-managed inventory is better than that of retailer-managed inventory, but we observe from the numerical experiments that there exist circumstances under which retailer-managed inventory shows better supply chain performance.https://ieeexplore.ieee.org/document/8922591/Yieldlead-timevendor-managed inventoryretailer-managed inventorydecentralized supply chainoptimal production quantity |
| spellingShingle | Soonkyo Lee Young Joo Kim Taesu Cheong Seung Ho Yoo Effects of Yield and Lead-Time Uncertainty on Retailer-Managed and Vendor-Managed Inventory Management IEEE Access Yield lead-time vendor-managed inventory retailer-managed inventory decentralized supply chain optimal production quantity |
| title | Effects of Yield and Lead-Time Uncertainty on Retailer-Managed and Vendor-Managed Inventory Management |
| title_full | Effects of Yield and Lead-Time Uncertainty on Retailer-Managed and Vendor-Managed Inventory Management |
| title_fullStr | Effects of Yield and Lead-Time Uncertainty on Retailer-Managed and Vendor-Managed Inventory Management |
| title_full_unstemmed | Effects of Yield and Lead-Time Uncertainty on Retailer-Managed and Vendor-Managed Inventory Management |
| title_short | Effects of Yield and Lead-Time Uncertainty on Retailer-Managed and Vendor-Managed Inventory Management |
| title_sort | effects of yield and lead time uncertainty on retailer managed and vendor managed inventory management |
| topic | Yield lead-time vendor-managed inventory retailer-managed inventory decentralized supply chain optimal production quantity |
| url | https://ieeexplore.ieee.org/document/8922591/ |
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