Vendor Managed Inventory in Practice: Efficient Scheduling and Delivery Optimization

Vendor Managed Inventory (VMI) is a widely adopted strategy in supply chain management, where the vendor assumes responsibility for maintaining inventory levels at the customer’s location. This paper presents a model to solve the VMI problem, focusing on optimizing inventory replenishment and reducing overall supply chain costs. The study employs a heuristic approach, breaking down the VMI problem into manageable phases, including clustering customers, determining service sequence lists, and optimizing delivery routes. The model is applied to a practical case study, demonstrating its effectiveness in minimizing stockouts while maintaining efficient inventory levels. This paper also examines key factors like delivery quantity optimization, route scheduling, and cost minimization. The model's effectiveness is demonstrated by specific performance criteria, such as reduced stockouts, improved service levels, and minimized transportation costs. The findings indicate that the suggested model can significantly enhance supply chain efficiency, providing organizations with a solid framework for enhancing their Vendor Managed Inventory procedures. These enhancements are accomplished while preserving simplicity and usefulness, without the need for overly complex technological systems.