You are entitled to access the full text of this document	Integrating VMI into joint replenishment planning for optimized manufacturing supply chains

Roushdy, B.

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Uncertain Supply Chain Management

ISSN 2291-6830 (Online) - ISSN 2291-6822 (Print) Quarterly Publication Volume 14 Issue 3 pp. 247-258 , 2026

You are entitled to access the full text of this document Integrating VMI into joint replenishment planning for optimized manufacturing supply chains Pages 247-258 Download PDF

Authors: Bassem Roushdy

DOI: 10.5267/j.uscm.2025.3.002

Keywords: VMI, Joint replenishment planning, Optimization, Supply Chain

Abstract: This paper presents a new integrated framework combining the Joint Replenishment Problem (JRP) with a generalized Vendor Managed Inventory (VMI) system. The model under consideration represents a three-level supply chain consisting of a supplier, manufacturer, and retailer. The model incorporates multiple product types, each produced on a dedicated machine at the manufacturer, subject to setup costs, and major and minor ordering costs. The primary objective of this research is to optimize a set of critical decision variables, including the common order interval, order frequencies for each item, backorder levels at the retailer, and production initiation times at the manufacturer for each product type, under both deterministic and stochastic demand scenarios. This analysis will provide valuable insights for improving joint replenishment operations in manufacturing. The research begins with a deterministic model fit for the particular issue area derived from the canonical JRP. Within a VMI context, the manufacturer, acting as the supply chain leader, utilizes shared information to derive initial feasible solutions. Subsequently, an optimization technique is employed, combining marginal cost-based and cumulative cost-based algorithms, while leveraging embedded discrete Markov chain decomposition method adapting Jacobi stepping method to determine steady-state probabilities. A cost function is then defined for each action state within this framework. The integration of the VMI policy into the JRP model can significantly reduce the whole cost of the supply chain, through balancing between production initiation and backorders under both the deterministic and stochastic models.

How to cite this paper

 Roushdy, B. (2026). You are entitled to access the full text of this document	Integrating VMI into joint replenishment planning for optimized manufacturing supply chains.Uncertain Supply Chain Management, 14(3), 247-258.

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