BENEFITS OF CPFR AND VMI COLLABORATION STRATEGIES IN A VARIABLE DEMAND ENVIRONMENT: A SIMULATION STUDY

摘要

In a two-echelon supply chain, discrete event simulation is used to investigate the benefits of CPFR and VMI over TSC, for both the manufacturer and the retailer in a variable demand environment. Results from this study confirm that CPFR achieves higher cost benefits than VMI for both the manufacturer and retailer. In addition, higher cost benefits are achieved in CPFR strategy for both manufacturer and retailer in an environment with high demand variability, low production capacity, high backorder penalty cost and long delivery lead time.