As a useful strategy to improve the flexibility of the system to manage uncertainty in supply and demand and to improve the sustainability of the supply chain, vendor-managed inventory (VMI) programs have attracted widespread attention in the field of supply chain management. However, a growing body of empirical literature has shown that participants’ decisions deviate significantly from the standard theoretical predictions. Under a VMI program, the supplier bears not only the production cost, but also the risk of leftover inventory. Moreover, the inequality among participants and different personalities of decision-makers in VMI programs may lead to the divergence of decision-making. To understand the supplier’s replenishment decision in view of the behavioral pattern, we propose a new inventory model for the supplier with the focus theory of choice. The proposed model conceives that the retailer evaluates each replenishment quantity based on the most salient demand for him/her instead of calculating the expected utility. By employing this inventory model, we construct a two-tier supply chain model with revenue-sharing contract and theoretically derive the optimal sharing percentage of the revenue and replenishment quantity. Results analysis gains managerial insights into the strategic selection of the retailer who faces suppliers with different personalities. Comparisons between the classic revenue-sharing contract model and the proposed model are also carried out by illustrative examples. This research provides a new perspective to analyze individual supplier’s behavior in a VMI program with revenue-sharing contracts.

Fuel availability is essential in supporting the sustainable economic growth of a country. The manufacturing industry, transportation activities, and shipping products between regions are the primary sectors that require a sustainable fuel supply. The fuel station contributes to distributing and delivering fuel in serving the demand for the fuel. This study investigates supplier competency's role in supporting fuel station business performance through supplier integration, vendor-managed inventory, and supply chain collaboration. The research surveyed 71 fuel stations in Timor Leste using a questionnaire designed with a five-point Likert scale. The questionnaires are distributed to supervisors or higher positions at fuel stations by distributing questionnaires by direct delivery and also through Google Forms for areas far away in downtown Timor Leste. Data from respondents were analyzed using smartPLS software version 4.0. The results found that supplier competency positively impacts supplier integration, vendor-managed inventory, and supply chain collaboration. Moreover, supplier integration positively impacts vendor-managed inventory, supply chain collaboration, and business performance. Vendor-managed inventory fuel station sites can have an impact on improving supply chain collaboration and business performance. In addition, supply chain collaboration between vendors and fuel stations in Timor Leste enables continuous business performance improvement. This research paves the way for supervisors, managers, and fuel station top management to collaborate with suppliers in maintaining inventory levels and forecasting the supply and demand for fuel procurement requirements. Finally, this research contributes to the theory of inventory optimization and supply chain performance.

Today, global competition entails companies having an advantage in supply chain networks to pursue superior performance. This work examines the link between information technology (IT) capability with the firm performance by adopting a lean production approach, vendor-managed inventory, and supply chain practices. The study has surveyed the population of the manufacturing company in East Java, Indonesia, using a questionnaire with a five-point Likert scale. A total of 111 manufacturing companies (medium and large) were selected from 5420 manufacturing companies listed in the Industrial Department of East Java. The partial least square (PLS) technique was used to analyze the data, using the SmartPLS software version 3.3. Thirteen hypotheses in this study were developed to investigate. The result revealed that all hypotheses of direct relationship were supported. IT capability directly affects lean production, vendor managed inventory, and supply chain practices. Moreover, lean production, vendor-managed inventory, and supply chain practices improve firm performance. Further analysis also indicated that all hypotheses of indirect hypotheses were supported except hypothesis one hypothesis (H9). IT capability indirectly improves firm performance through lean production, vendor-managed inventory, and supply chain practices. The result provides insight for managers and policymakers on enhancing firm performance by improving its IT capability, adopting lean production, vendor-managed inventory, and supply chain practices. This research contributes to reinforcing the supply chain management theory.