In a recent paper Yao et al. present a single-buyer-single-supplier model to explore the effects of collaborative supply-chain initiatives such as vendor managed inventory (VMI). Several conclusions drawn from their model are arguable as (i) the model ignores the costs of shipments from the supplier to the buyer and (ii) the model times the incoming and outgoing flows at the supplier in a manner that overstates the inventory needed at the supplier. (C) 2007 Elsevier B.V. All rights reserved.
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Chung Yuan Christian Univ, Dept Ind & Syst Engn, Chungli 32023, TaiwanChung Yuan Christian Univ, Dept Ind & Syst Engn, Chungli 32023, Taiwan
Wang, Wan-Tsu
Wee, Hui-Ming
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Chung Yuan Christian Univ, Dept Ind & Syst Engn, Chungli 32023, Taiwan
San Jose State Univ, Dept Ind & Syst Engn, San Jose, CA 95192 USAChung Yuan Christian Univ, Dept Ind & Syst Engn, Chungli 32023, Taiwan
Wee, Hui-Ming
Tsao, H. -S. Jacob
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San Jose State Univ, Dept Ind & Syst Engn, San Jose, CA 95192 USAChung Yuan Christian Univ, Dept Ind & Syst Engn, Chungli 32023, Taiwan
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Korea Adv Inst Sci & Technol, Grad Sch Management, Seoul 130722, South KoreaKorea Adv Inst Sci & Technol, Grad Sch Management, Seoul 130722, South Korea
Kim, Bowon
Park, Chulsoon
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Korea Adv Inst Sci & Technol, Grad Sch Management, Seoul 130722, South KoreaKorea Adv Inst Sci & Technol, Grad Sch Management, Seoul 130722, South Korea