The incentive issues in VMI contractual agreements are also studied in VMI literature. Fry, apuscinski and Olsen (2001) model a specific (z,Z)-type of VMI agreement in a supply chain environment with a single manufacturer and a single retailer with stochastic demand and compare the VMI system with a traditional case under full information sharing. In this type of contract, the retailer sets the inventory levels, z and Z, that represent the lowest and highest inventory levels, respectively. The manufacturer should keep the retailer’s inventory level between these specified levels. The manufacturer follows a fixed production schedule, but can replenish the retailer in any period and she incurs a penalty cost if she cannot keep the retailer’s …show more content…
A supply chain may be very close to a centralized system depending on the performance of the VMI agreement between the supplier and the retailer. The effects of VMI agreements to the coordination of the supply chain is studied in the literature. Cachon (2001) studies VMI in a supply chain with a single supplier-multiple retailers. He analyzes various strategies with the aim of channel coordination. He employs game theory to find the equilibrium for each member of the supply chain. Cachon (2001) remarks that “VMI alone does not guarantee an optimal supply-chain solution; both the vendor and retailers must also agree to make fixed transfer payments to participate in the VMI contract, and then be willing to share the benefits.” Bernstein, Chen and Federgruen (2006) study a partially centralized VMI model. For the supply chain a replenishment strategy is determined. They find that when the demand rate is constant and a single retailer retains the decision rights on pricing, the channel coordination can be achieved. In their supply chain environment, the supplier incurs holding costs of the retailer. Therefore, their system considers consignment inventory with VMI. Dong and Xu (2002) analyze the different impacts of a VMI program on a supply channel in terms of total chain cost and supplier‟s cost. The purchasing price is set by the retailers in the contract; however the selling quantity is determined by the supplier in their model. They find that total chain cost is reduced by VMI, but the profit of the supplier could decrease under some certain conditions. They argue that VMI is an effective strategy that can realize many of the benefits obtainable only in a fully integrated supply channel. Narayanan and Raman (1997) and Fry, Kapuscinski and Olsen (2001) also analyze VMI agreements under stochastic demand and discuss centralization. One aim of our study is to analyze the benefits of the VMI agreement on the
Mr. P has a history of DUI’s in his past, which thereby warranted his current arrest. He was pleasant and cooperative during his arrest and was taken into custody without incident. He then was released the next day and was given a court date. Mr. P obtained legal defense and faced the judge with fear of being incarcerated, but was confident that he had a defensible case. The judge thought otherwise, and imposed a harsh sentence of 90-day substance abuse treatment at a correctional facility. Yet, Mr. P was defensive when confronted about his alcohol use and denies that that his drinking and driving is a concern. Furthermore, he rejects this behavior as being harmful to his work environment, other than if he were incarcerated he may lose employment.
The child is at stage three linguistic speech in oral development (Fellows & Oakley, 2014). They show evidence of this in both their receptive and expressive language meeting the criteria for this stage (Fellows & Oakley, 2014). They show evidence of their receptive language by their ability in being able to understand opposites (Fellows & Oakley, 2014). While they had some issues with the differences between soft and scratchy they were able to demonstrate the differences between big and little several times during the dialogue. They showed evidence of their expressive language by their use of telegraphic speech, expanding vocabulary and in the ability to take in turns of speaking and listening (Fellows & Oakley, 2014). Telegraphic
Good oral hygiene is an essential part of nursing care and if left undone can lead to larger problems such as increased risk for pneumonia, tooth loss, mucosal lesions, and increased complications of comorbidities (Delgado, 2016). There needs to be a revision to the current oral care policy because oral hygiene is not being performed on the residents. This policy will benefit the patients and the facility. Patients will benefit from better oral hygiene thus reducing the risk of overall infection. The facility will benefit by saving money related unnecessary spending on items such as antibiotics and intravenous (IV) supplies.
I am going to start my essay by looking at the way in which plays were
o Please describe a time when you performed a thorough head, neck and oral exam and the findings had a significant impact on how you proceeded with the dental hygiene process of care. Annette was performing her usual head, neck, and oral exam on a patient and found an enlarged thyroid. She recommended to the patient that she go see her primary care physician to get a better diagnosis. The patient went to her primary care physician and was told there was probably nothing. Later, the patient returned to the dental office and saw Annette and told her what the physician said.
In such situations, the buying industry often faces a high pressure on margins from their suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the organization.
Marshall’s explanation of how producers decide is divided in two decision making functions: 1) the price bidding function and 2) the production level start up function. Producers do not impose prices; they propose list prices and buyers decide how much to buy at prices proposed, of course after some possible bargaining. All the same producers do not impose production levels, they invest with a production level target that sometime later may succeed or not. Both price and production follow demand in the same direction; if demand grows then producers observe that their individual inventories decrease and hence they, acting in cooperation or huge competition among them, raise their own prices and production levels. Next, each producer decide whether to accept the amount sold and keep the selling prices or to change bid prices and production levels again until a satisfactory, or inevitable, solution comes about. This satisfactory solution looks ...
Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Quickly becoming apparent after only a few rounds of play was in the absence of coordinating direction the individual supply chain links immediately focused upon acting in their own best interests much more so than the organization as a whole. Whether the end use customer was satisfied became secondary to avoiding stock outages for the next link in the chain, or their specific “upstream customer”. The real world application of this example is that focus on the end use customer must be consistent and maintained throughout the process up to and including delivery. Undoubtedly internal customers, such as retailers to wholesalers and distributors to production, must be serviced along the way for the transaction to ultimately occur. However, unless an end use customer is involved no profit can be realized by anyone.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage
KLI could try a similar approach and have suppliers use the just-in-time (JIT) inventory system and keep levels high enough to sell out of products, but low enough to use residual space available.
In spite of Dell’s Direct Model strategy, the company had lost any price advantage it had over its competitors. Dell also had an issue with channel inventory availability driven by the fact that their competitors were attempting to replicate their strategy. This was a large threat to the organization because they so heavily relied on just-in-time delivery of parts. Dell’s competitors faced many challenges to the direct distribution method, however. According to Exhibit 8 in the case (“Ratings of PC Vendors by Corporate Mangers with PC-buying Responsibility”), channel based support was rated the lowest on all scales, showing that this was Dell’s riskiest area as well.