Quantifying the benefits of continuous replenishment program for partner evaluation
| Autor: | Payam Parsa, Manuel D. Rossetti, Edward A. Pohl, Shengfan Zhang |
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| Rok vydání: | 2017 |
| Předmět: |
Supply chain risk management
Economics and Econometrics Total cost Supply chain 05 social sciences Supply chain collaboration Management Science and Operations Research General Business Management and Accounting Industrial and Manufacturing Engineering Cost savings Business relationship management 03 medical and health sciences 0302 clinical medicine 0502 economics and business 030221 ophthalmology & optometry Operations management Business health care economics and organizations 050203 business & management Cost component |
| Zdroj: | International Journal of Production Economics. 187:229-245 |
| ISSN: | 0925-5273 |
| DOI: | 10.1016/j.ijpe.2017.02.017 |
| Popis: | This paper develops a data-driven model that quantifies the benefits of supply chain collaboration initiatives such as a continuous replenishment program (CRP). CRP is a well-established supply chain collaboration program that is widely used in business. The model computes the cost savings of CRP for both partners involving inventory holding, transportation and ordering/handling cost components. The savings drivers associated with each cost component are identified and used to quantify the impact of CRP. The model is applied in a healthcare supply chain case study where a manufacturer seeks to estimate the cost savings of a business relationship with a distributor. The results indicate that CRP reduces the total cost of the supply chain by 19.1%. In this instance, the distributor gains disproportionately more savings in the shared cost components. The variability and sensitivity of cost savings across the network reveal the supply chain parameters that affect the partner savings. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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