From a traditional replenishment system to vendor-managed inventory: A case study from the household electrical appliances sector

This paper shows that vendor-inanaged inventory is also used fine in household electrical appliances sector. Taking Electrolux Italia as an example, the implementation of this technique is presented and analysed, highlighting the various processes involved (sales forecasting, capacity need forecasting, master planning, replenishment need calculation, dispatch planning, shipping), parameters (target stock, replenishment need, dispatch plan, assigned stock, etc.) needed to regulate vendor managed inventory. The paper points out the benefits obtained following the implementation of this technique and presents based on the case the variables that define and characterize the conditions under which it can be applied. (c) 2004 Elsevier B.V. All rights reserved.