Co-Ordinative Stock Management System for Permissible Storage in VMI Pattern

Abstract

this paper focuses on the establishment of storage management models for permissible shortage and comparison between stock management systems with and without shortage. Through the comparison a relevant optimization strategy is brought up. Furthermore, this paper reveals that the supply chain system could run more efficiently with an establishment of a permissible shortage model in VMI pattern under certain conditions, especially when storage cost is higher than shortage cost.