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Evaluation of the benefits resulting from the Implementation of Vendor Managed Inventory at PT. Cognis Indonesia

Allo, Enda Layuk - Personal Name; Ong, Teguh F. - Personal Name;

The thesis deals with VMI implementation between a Fatty Alcohol Sulfate (FAS) producer and its key customer. Vendor Managed Inventory (VMI) falls into the category of Strategic Alliances, a key issue in Supply Chain Management (SCM). In contrast to conventional sales, where the ownership of the product changed once the sales is executed and product is delivered, in VMI, the delivered product to customer is still owned by the vendor, until the customer uses it. The vendor is responsible to monitor and replenish the stock to the agreed level to ensure a smooth supply. This different approach of doing business consequently requires intensive information sharing from both parties. nnThe focus of this work is to analyze the quantitative and qualitative benefits obtained by the parties involved along with the VMI implementation. Quantitative analysis will involve cost comparison incurred between conventional sales and VMI. The cost to be analyzed will be realted to inventory management, transportation, and warehousing. Meanwhile qualitative analysis will touch aspects such as service level, and other benefits not directly quantifiable.nnThe thesis work is also supposed to investigate VMI applicability for industrial product, such as FAS, rather than only for consumer products as so far commonly reported in a lot of research works. Further, it should explore the key success factors of the implementation and come up with suggestions for improvement.n

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M00042 (wh)Available
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Series Title
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Call Number
42
Publisher
: Swiss German University., 2003
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Language
English
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Subject(s)
MBA
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