5.1. Conclusions
It has been well documented that inventory reductions and cost savings can be reached by implementing collaborative initiatives such as vendor managed
inventory, continuous replenishment, and just-in-time
purchasing that allow for information sharing and
integration among firms in the supply chain. This
paper contributes to the literature by developing an
analytical model that helps to provide a better understanding of how important supply chain parameters,
namely ordering costs and carrying charges, affect the
inventory cost savings to be realized from VMI and
the distribution of these savings between buyers and