On Measuring Supplier Performance Under Vendor-Managed-Inventory Programs in Capacitated Supply Chains

@article{Choi2004OnMS,
  title={On Measuring Supplier Performance Under Vendor-Managed-Inventory Programs in Capacitated Supply Chains},
  author={Ki-Seok Choi and J. G. Dai and Jing-Sheng Song},
  journal={Manufacturing & Service Operations Management},
  year={2004},
  volume={6},
  pages={53-72}
}
A widely accepted performance measures in supply chain management practice, frequency-based service levels such as fill rate and stockout rate are often considered in supply contracts under vendor-managedinventory (VMI) programs. Using a decentralized two-party capacitated supply chain model consisting of one manufacturer and one supplier in a VMI environment, we demonstrate that supplier’s service level is in general insufficient for the manufacturer to warrant the desired service level at the… CONTINUE READING

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Contracting for inventory in a supply chain with stochastic demand and substitute products

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