General dynamic comparison of VMI and traditional supply chains
In Table 4 we have compared VMI and traditional supply chains across a range of performance metrics. The peak ORATE overshoot is the simple measure of bullwhip and has already been met in Fig. 5. Note that for completeness Table 4 includes three optimal solutions for each of the two values of G (1.0 and 4.0). These are for ratios of production adaptation/inventory holding costs W=0.01, 1.0, and 100. The reason for this is that W=0.01 approximates an agile system; W=100 approximates a lean (level scheduling) system; whilst W=1.0 is a compromise solution. As noted by Christopher and Towill (2000) there are occasions where “agile” is the best business solution, and where “lean” is the best business solution, and where some “mix” is required.