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Supplier managed inventory in the OEM supply chain: the impact of relationship types on total costs and cost distribution

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Abstract

We investigate the impact of four variants of supplier managed inventory on total costs and cost distribution in a capital goods supply chain consisting of a parts supplier who delivers parts to an original equipment manufacturer’s assembly plant. The four supplier managed inventory variants differ in the components of inventory costs that the supplier has to carry. The performance of the supplier managed inventory relationships is benchmarked with the situation where the assembly plant manages the inventories. Interesting managerial insights follow from this comparison.

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Authors and Affiliations

  1. OM Partners, Koralenhoeve 23, 2160, Wommelgem, Belgium

    P. L. M. Van Nyen

  2. Faculty of Technology Management, Technische Universiteit Eindhoven, Den Dolech 2, P.O. Box 513, Paviljoen F08, 5600 MB, Eindhoven, The Netherlands

    J. W. M. Bertrand

  3. Faculty of Technology Management, Technische Universiteit Eindhoven, Den Dolech 2, P.O. Box 513, Paviljoen F01, 5600 MB, Eindhoven, The Netherlands

    H. P. G. Van Ooijen

  4. Katholieke Universiteit Leuven, Campus Kortrijk, E. Sabbelaan 53, 8500, Kortrijk, Belgium

    N. J. Vandaele

Authors
  1. P. L. M. Van Nyen
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  2. J. W. M. Bertrand
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  3. H. P. G. Van Ooijen
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  4. N. J. Vandaele
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Correspondence to P. L. M. Van Nyen.

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Van Nyen, P.L.M., Bertrand, J.W.M., Van Ooijen, H.P.G. et al. Supplier managed inventory in the OEM supply chain: the impact of relationship types on total costs and cost distribution. OR Spectrum 31, 167–194 (2009). https://doi.org/10.1007/s00291-007-0105-4

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