A note on supply risk and inventory outsourcing

Authors: Cigolini, R.¹; Rossi, T.²

Source: Production Planning and Control, Volume 17, Number 4, June 2006 , pp. 424-437(14)

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Abstract:

This paper is aimed at developing and testing a methodology to evaluate the most appropriate collaboration level within a given supply chain. In particular, the proposed methodology is conceived for logistic networks belonging to the consumer packaged goods industry, e.g. the grocery industry, and it consists of: (i) identifying an approximation of collaboration, (ii) representing through such approximation the different options among collaborative planning forecasting and replenishment (CPFR), vendor management inventory (VMI) and loosely collaborative approach (LCA); (iii) using a simulation-based decision support system to select the best collaboration level. The proposed methodology has been applied to a real-life supply chain in the food and beverage industry. Results conclude that the methodology proposed here proved useful in facing the problem of collaboration level definition among the nodes of a consumer packaged goods logistic network.

Keywords: Supply chain; CPFR; VMI; Simulation; Food and beverage

Document Type: Research article

DOI: http://dx.doi.org/10.1080/09537280600650338

Affiliations: 1: Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Milano, Italy 2: Institute of Technology, Università Cattaneo, LIUC, Castellanza (VA), Italy

Publication date: 2006-06-01

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