Inventory management practices and its effects on vendor managed inventory performance

The Vendor Managed Inventory (VMI) has long been implemented by many corporations due to its various positive effects it has towards the company’s performance.At the same time, a number of success stories of VMI program have also been discussed by numerous authors.However, until now, there is no con...

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Main Authors: Radzuan, Kamaruddin, Abdul Rahim, Mohd Kamarul Irwan, Anuar, Herman Shah, Mohd Nawi, Mohd Nasrun, Osman, Wan Nadzri
Format: Article
Published: American Scientific Publishers 2015
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Online Access:http://repo.uum.edu.my/17176/
http://doi.org/10.1166/asl.2015.6228
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spelling my.uum.repo.171762016-04-17T02:36:04Z http://repo.uum.edu.my/17176/ Inventory management practices and its effects on vendor managed inventory performance Radzuan, Kamaruddin Abdul Rahim, Mohd Kamarul Irwan Anuar, Herman Shah Mohd Nawi, Mohd Nasrun Osman, Wan Nadzri TS Manufactures The Vendor Managed Inventory (VMI) has long been implemented by many corporations due to its various positive effects it has towards the company’s performance.At the same time, a number of success stories of VMI program have also been discussed by numerous authors.However, until now, there is no concrete conclusion on VMI has been clarified. Therefore, this study tries to shed the lights on the effects of inventory management practices, which include visibility of demand, replenishment decision, inventory ownership, inventory location, and inventory control limits on VMI performance.Quantitative methodology was chosen as the method to gather the data where those manufacturing companies being selected according to the list from the Federation of Malaysian Manufacturer (FMM).The data was gathered from 101 manufacturing companies whose manufacturing based located in Malaysia. Data analysis was conducted by employing descriptive analysis, factor analysis, reliability analysis, and a simple multiple regressions.The findings showed that visibility of demand and inventory control limits were the main predictor of service performance. Meanwhile, only inventory location contributes to cost performance of VMI. Manufacturing companies should urge their customer to share demand information and setting appropriate min–max limits of inventory levels in order to get benefits from VMI program.It was suggested for companies to consider to setup inventory storage or warehouse near to their customer’s premises especially when engaging with abroad customers. American Scientific Publishers 2015 Article PeerReviewed Radzuan, Kamaruddin and Abdul Rahim, Mohd Kamarul Irwan and Anuar, Herman Shah and Mohd Nawi, Mohd Nasrun and Osman, Wan Nadzri (2015) Inventory management practices and its effects on vendor managed inventory performance. Advanced Science Letters, 21 (6). pp. 2114-2117. ISSN 1936-6612 http://doi.org/10.1166/asl.2015.6228 doi:10.1166/asl.2015.6228
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
topic TS Manufactures
spellingShingle TS Manufactures
Radzuan, Kamaruddin
Abdul Rahim, Mohd Kamarul Irwan
Anuar, Herman Shah
Mohd Nawi, Mohd Nasrun
Osman, Wan Nadzri
Inventory management practices and its effects on vendor managed inventory performance
description The Vendor Managed Inventory (VMI) has long been implemented by many corporations due to its various positive effects it has towards the company’s performance.At the same time, a number of success stories of VMI program have also been discussed by numerous authors.However, until now, there is no concrete conclusion on VMI has been clarified. Therefore, this study tries to shed the lights on the effects of inventory management practices, which include visibility of demand, replenishment decision, inventory ownership, inventory location, and inventory control limits on VMI performance.Quantitative methodology was chosen as the method to gather the data where those manufacturing companies being selected according to the list from the Federation of Malaysian Manufacturer (FMM).The data was gathered from 101 manufacturing companies whose manufacturing based located in Malaysia. Data analysis was conducted by employing descriptive analysis, factor analysis, reliability analysis, and a simple multiple regressions.The findings showed that visibility of demand and inventory control limits were the main predictor of service performance. Meanwhile, only inventory location contributes to cost performance of VMI. Manufacturing companies should urge their customer to share demand information and setting appropriate min–max limits of inventory levels in order to get benefits from VMI program.It was suggested for companies to consider to setup inventory storage or warehouse near to their customer’s premises especially when engaging with abroad customers.
format Article
author Radzuan, Kamaruddin
Abdul Rahim, Mohd Kamarul Irwan
Anuar, Herman Shah
Mohd Nawi, Mohd Nasrun
Osman, Wan Nadzri
author_facet Radzuan, Kamaruddin
Abdul Rahim, Mohd Kamarul Irwan
Anuar, Herman Shah
Mohd Nawi, Mohd Nasrun
Osman, Wan Nadzri
author_sort Radzuan, Kamaruddin
title Inventory management practices and its effects on vendor managed inventory performance
title_short Inventory management practices and its effects on vendor managed inventory performance
title_full Inventory management practices and its effects on vendor managed inventory performance
title_fullStr Inventory management practices and its effects on vendor managed inventory performance
title_full_unstemmed Inventory management practices and its effects on vendor managed inventory performance
title_sort inventory management practices and its effects on vendor managed inventory performance
publisher American Scientific Publishers
publishDate 2015
url http://repo.uum.edu.my/17176/
http://doi.org/10.1166/asl.2015.6228
_version_ 1644282155589697536
score 13.144533