A SWMR Algorithm Approach for the Vendor Managed Inventory Problem when Static Demand Rates

Authors

  • Mohd Kamarul Irwan Abdul Rahim School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia
  • Babalola Haorayau Bolaji College of Management and Social Sciences, Osun State University, Osogbo, Nigeria
  • Mohd Rizal Razalli School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia
  • Mohd Nasrun Mohd Nawi School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia
  • Afif Zuhri Muhammad Khodri Harahap Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Cawangan Terengganu Kampus Dungun, 23000 Sura Hujung Dungun, Terengganu, Malaysia
  • Ahmad Nur Aizat Ahmad Department of Production and Operation, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, 86400 Batu Pahat, Johor, Malaysia

DOI:

https://doi.org/10.37934/araset.54.1.109122

Keywords:

Inventory control, Vendor managed inventory, Supply chain optimization, Vehicle routine problem, Static demand

Abstract

In a two-phase supply chain with Vendor Managed Inventory (VMI) policies, the supplier takes on the duty of keeping its retailers' inventory up to date and making sure they never run out of stock. This is in addition to his inbound inventory. This study aims to combine the retailers in various set partitions or to maximize their distribution and inventory holding costs within the same set partition. This paper focuses on a two-stage supply chain made of a single warehouse and multiple retailers (SWMR) facing a static demand and implementing VMI. We proposed a model for coordinating the system with a two-phase solution method. The first phase is to minimize the overall inventory costs and, in the second phase, a constructive vehicle routing problem (VRP) heuristic is used to optimize the distribution costs by satisfying some additional restrictions. Results of this implementation of VMI in an illustrative supply chain case are shown and discussed in detail.

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Author Biographies

Mohd Kamarul Irwan Abdul Rahim, School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia

mk.irwan@uum.edu.my

Babalola Haorayau Bolaji, College of Management and Social Sciences, Osun State University, Osogbo, Nigeria

babalola_haorayau@oyagsb.uum.edu.my

Mohd Rizal Razalli, School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia

rizal@uum.edu.my

Mohd Nasrun Mohd Nawi, School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia

nasrun@uum.edu.my

Afif Zuhri Muhammad Khodri Harahap, Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Cawangan Terengganu Kampus Dungun, 23000 Sura Hujung Dungun, Terengganu, Malaysia

afifzuhri@uitm.edu.my

Ahmad Nur Aizat Ahmad, Department of Production and Operation, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, 86400 Batu Pahat, Johor, Malaysia

aizat@uthm.edu.my

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Published

2024-10-07

How to Cite

Abdul Rahim, M. K. I., Bolaji, B. H., Razalli, M. R., Mohd Nawi, M. N., Muhammad Khodri Harahap, A. Z., & Ahmad, A. N. A. (2024). A SWMR Algorithm Approach for the Vendor Managed Inventory Problem when Static Demand Rates. Journal of Advanced Research in Applied Sciences and Engineering Technology, 109–122. https://doi.org/10.37934/araset.54.1.109122

Issue

Online First Articles

Section

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