VENDOR MANAGED INVENTORY MODEL: A CASE STUDY

This paper describes with the help of a case study how vendor managed inventory (VMI) model manages in real time the dynamic needs of supply chain process. Throughout the supply chain, VAll model is a way to cut inventory related costs and keep inventory levels low VMI model helps companies to reduce the inventory-associated costs by shifting the responsibility of managing and replenishing inventory to vendors. A study of a leading tyre manufacturer (XYZ) is reported. The supply chain of this company includes raw materials, manufacturing operations and the distribution network. The product range includes truck tyres, front-end tractor tyres, scooter tyres, LCV tyres, and passenger radial tyres for bath domestic and international marketfrom manufacturing plants at different locations in the country. A prototype of VMI model based on simulation approach has been developed to illustrate how VMI-model can enhance the performance of this organization by minimizing the inventory associated costs.