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Related Experiment Videos

Supplier-managed inventory: schedule sharing.

K Ray1, C Swanson

  • 1Motorola, Austin, TX, USA.

Hospital Materiel Management Quarterly
|April 7, 1996
PubMed
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Supplier-managed inventory (SMI) offers a win-win partnership by enabling customer schedule flexibility and supplier shipping control. This inventory management strategy leverages electronic data interchange for seamless communication of inventory needs.

Area of Science:

  • Supply Chain Management
  • Operations Research

Background:

  • Traditional inventory management models can create inefficiencies.
  • Supplier-customer relationships often lack flexibility and real-time data exchange.

Purpose of the Study:

  • To introduce and explain the Supplier-Managed Inventory (SMI) methodology.
  • To highlight the benefits of SMI for both customers and suppliers.

Main Methods:

  • Utilizing Electronic Data Interchange (EDI) for communication.
  • Defining customer inventory requirements (gross requirements, current levels, min/max levels).

Main Results:

  • SMI facilitates a collaborative partnership between customers and suppliers.
  • Customers gain flexibility in schedule adjustments.

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  • Suppliers gain control over shipment timing and quantities.

    • Conclusions:

    • SMI enhances supply chain efficiency through improved communication and flexibility.
    • The methodology fosters a mutually beneficial relationship, optimizing inventory levels and operations.