Effects of vendor managed inventory on the supply chain

Abstract

This research is about the effects of vendor managed inventory in supply chain management, a case study on mini bakeries Narok, Kenya. The factors investigated were found to have a negative impact on VMI and hence contributed to ineffectiveness on the company supply chain functions. The study explored the effects of the following factors on the supply chain collaboration, demand variability, lack of supplier relationship management and poor production planning. The study narrowed its findings on these factors which were addressed by the objective of the study.i.e To establish the effect of technology requirements on vendor managed inventory; to establish the effect of lack of supply chain collaboration on vendor managed inventory; to determine the effect of poor production planning on vendor managed inventory and to come up with solutions to factors that affects vendor managed inventory in supply chain and to answer the following questions I. How does technology requirements affect vendor-managed inventory? ii. What is the effect of lack of supply chain collaboration on vendor managed inventory iii. How does demand variability affect vendor managed inventory? iv. What is the effect of lack of supplier's relationship management on vendor management inventory? v. What is the effect of poor production planning on vendor managed inventory?