Vendor Managed Inventory

Only available on StudyMode
  • Download(s) : 220
  • Published : February 28, 2013
Open Document
Text Preview
THE EFFECTIVENESS OF VENDOR MANAGED INVENTORY (VMI)
TOWARDS IMPROVING SUPPLY CHAIN MANAGEMENT (SCM): A
CONTRACT MANUFACTURER PERSPECTIVE

By
SAZANI BIN SHAFIE

Research report in partial fulfillment of the requirement for The degree of Master of Business Administration
MARCH 2004

I would like to take this opportunity to show my appreciation to certain people whose contributions and assistance have been critical towards the completion of this project.
My heartfelt thanks and gratitude goes to Associates Professor T. Ramayah for his tireless effort and tremendous assistance. His comments have been invaluable and his guide remains inspiration by which I follow as I hike through the endless track of completion.

My mother, my wife and my truly friend have been my strength during the toughest days in the progress of writing the paper.
Thank you all.

ii

TABLE OF CONTENTS

ACKNOWLEDGEMENTS

ii

TABLE OF CONTENTS

iii

LIST OF TABLES

vii

LIST OF FIGURES

viii

ABSTRAK

ix

ABSTRACT

x

Chapter 1

1

1.1

Background of the Study

1

1.2

Problem Statement

3

1.3

Research Objectives

4

1.4

Research Questions

5

1.5

Scope of the Study

5

1.6

Definition of Variables

6

1.6.1

Supply Chain Management

6

1.6.2

Vendor Managed Inventory

6

1.6.3

Chapter 2

INTRODUCTION

Contract Manufacturing

7

LITERATURE REVIEW
2.1

Introduction

9

2.1.1

The Evolution of SCM

9

2.1.2

Effective SCM and the need

iii

for Performance Measures

11

2.2

Performance Measures in SCM

12

2.3

Vendor Managed Inventory

14

2.3.1

Characteristic of VMI

14

2.3.2

VMI and Company Performance

16

2.3.3

Demand Sharing in VMI

18

2.3.4

Information Sharing in VMI

20

2.3.5

Strategic Partnership in VMI

21

2.4

22

2.5

Benefit of VMI

23

2.6

Problem with VMI

24

2.7

Chapter 3

VMI in CM Business Environment

Effective Communication in VMI

25

RESEARCH FRAMEWORK AND METHDOLOGY

26

3.1

Introduction

26

3.2

Conceptual Framework

26

3.3

Hypotheses Development

28

3.4

Population and Sample

31

3.5

Measures and Questionnaire Design

32

3.5.1

32

3.6

Questionnaire Design

Data Collection Method

iv

33

Chapter 4

DATA ANALYSIS AND RESULT

34

4.1

Introduction

34

4.2

Respondent’s Profile

34

4.3

Goodness of Data

36

4.3.1

36

4.4

Reliability of measures

37

4.4.1

Overall Descriptive Statistics

37

4.4.2

4.5

Descriptive Analysis

Deference of Demand Sharing, Information Sharing
And Strategic Partnership and CM performance
Across the Demographics Profile of CM
38

Hypotheses Testing
4.5.1

4.5.1

4.6

Chapter 5

38

Impact of Demand Sharing, Information Sharing
And Strategic Partnership on CM

38

Moderating Effect of Effective Communication
Between Extent of VMI and CM Performance

40

Summary of the Findings

44

DISCUSSION AND CONCLUSION
5.1

Discussion
5.1.1

5.1.2

5.1.3

46

Does Information Sharing
Influence CM Performance

47

Does Demand Sharing
Influence CM performance

48
tracking img