바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

Consignment Review: Investigation into Its Potential as a Supply Chain Collaboration Program

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2014, v.12 no.7, pp.89-101
https://doi.org/https://doi.org/10.15722/jds.12.7.201407.89
Ryu, Chungsuk

Abstract

Purpose - This study aims to show that consignments can enable supply chain collaboration, based on the review of selected studies, and aims to investigate its potential to be a better collaboration program, through an analytical comparison with other collaboration initiatives. Research design, data, and methodology - This study uses a literature review on selected studies that researched consignments. In addition, based on the proposed framework, the current consignment process and other well-known collaboration programs are analyzed in terms of three key collaboration aspects. Results - Most studies employ simple research in terms of their purpose and methodology. An analysis with the proposed framework indicates the potential of consignments to foster supply chain collaboration. Conclusions - Based on the literature review, this study suggests that future research needs to aim for diverse research goals and conduct sophisticated research on consignments. An analysis with the proposed framework shows that consignments would be more effective for supply chain collaboration if active information sharing and joint decision-making are implemented.

keywords
Supply Chain Collaboration, Consignment, Contract, Inventory Management, Literature Review

Reference

1.

Adida, E., & Ratisoontorn, N. (2011). Consignment Contracts with Retail Competition. European Journal of Operational Research, 215(1), 136-148.

2.

Aggarwal, S. P., & Jaggi, C. K. (1995). Ordering Policies of Deteriorating Items under Permissible Delay in Payments. The Journal of the Operational Research Society, 46(5), 658-662.

3.

Aviv, Y. (2001). The Effect of Collaborative Forecasting on Supply Chain Performance. Management Science, 47(10), 1326-1343.

4.

Ballard, R. (1987). Future Outlook: Consignment as an Answer to Cost and Competitive Pressures. Hospital Materiel Management Quarterly, 8(4), 60-64.

5.

Ballard, R. (1991). Implementing Consignment: A Materiel Manager's Viewpoint. Hospital Materiel Management Quarterly, 13(1), 18-21.

6.

Battini, D., Grassi, A., Persona, A., & Sgarbossa, F. (2010a). Consignment Stock Inventory Policy: Methodological Framework and Model. International Journal of Production Research, 48(7), 2055-2079.

7.

Battini, D., Gunasekaran, A., Faccio, M., Persona, A., & Sgarbossa, F. (2010b). Consignment Stock Inventory Model in an Integrated Supply Chain. International Journal of Production Research, 48(2), 477-500.

8.

Sgarbossa, F. (2010b). Consignment Stock Inventory Model in an Integrated Supply Chain. International Journal of Production Research, 48(2), 477-500.

9.

Ben-Daya, M., Hassini, E., Hariga, M., & AlDurgam, M. M. (2013). Consignment and Vendor Managed Inventory in Single-Vendor Multiple Buyers Supply Chains. International Journal of Production Research, 51(5), 1347-1365.

10.

Bernstein, F., Chen, F., & Federgruen, A. (2006). Coordinating Supply Chains with Simple Pricing Schemes: The Role of Vendor-Managed Inventories. Management Science, 52(10), 1483-1492.

11.

Boyaci, T., & Gallego, G. (2002). Coordinating Pricing and Inventory Replenishment Policies for One Wholesaler and One or More Geographically Dispersed Retailers. International Journal of Production Economics, 77(2), 95-111.

12.

Braglia, M., Gabbrielli, R., & Zammori, F. (2013). Consignment Stock Theory with a Fixed Batch Manufacturing Process. International Journal of Production Research, 51(8), 2377-2398.

13.

Braglia, M., & Zavanella, L. (2003). Modeling an Industrial Strategy for Inventory Management in Supply Chains:The 'Consignment Stock' Case. International Journal of Production Research, 41(16), 3793-3808.

14.

Cachon, G. P., & Fisher, M. (2000). Supply Chain Inventory Management and the Value of Shared Information. Management Science, 46(8), 1032-1048.

15.

Cachon, G. P., & Lariviere, M. A. (2001). Contracting to Assure Supply: How to Share Demand Forecasts in a Supply Chain. Management Science, 47(5), 629-646.

16.

Cachon, G. P., & Zipkin, P. H. (1999). Competitive and Cooperative Inventory Policies in a Two-Stage Supply Chain. Management Science, 45(7), 936-953.

17.

Caridi, M., Cigolini, R., & De Marco, D. (2005). Improving Supply-Chain Collaboration by Linking Intelligent Agents to CPFR. International Journal of Production Research, 43(20), 4191-4218.

18.

Cetinkaya, S., & Lee, C. Y. (2000). Stock Replenishment and Shipment Scheduling for Vendor-Managed Inventory Systems. Management Science, 46(2), 217-232.

19.

Chen, F., Drezner, Z., Ryan, J. K., & Simchi-Levi, D. (2000). Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information. Management Science, 46(3), 436-443.

20.

Chen, J. M., Cheng, H. L., & Lin, I. C. (2011). On Channel Coordination under Price-Dependent Revenue-Sharing:Can Ebay's Fee Structure Coordinate the Channel? Journal of the Operational Research Society, 62(11), 1992-2001.

21.

Chen, J. M., Lin, I. C., & Cheng, H. L. (2010). Channel Coordination under Consignment and Vendor-Managed Inventory in a Distribution System. Transportation Research: Part E, 46(6), 831-843.

22.

Chen, M.C., Yang, T., & Li, H.C. (2007). Evaluating the Supply Chain Performance of It-Based Inter-Enterprise Collaboration. Information & Management, 44(6), 524-534.

23.

Chen, S. L., & Liu, C. L. (2007). The Optimal Consignment Policy for the Manufacturer under Supply Chain Co-Ordination. International Journal of Production Research, 46(18), 5121-5143.

24.

Chopra, S., & Meindl, P. (2004). Supply Chain Management:Strategy, Planning, and Operations (2nd ed.). Upper Saddle River, NJ: Prentice Hall.

25.

Corbett, C. J. (2001). Stochastic Inventory Systems in a Supply Chain with Asymmetric Information: Cycle Stocks, Safety Stocks, and Consignment Stock. Operations Research, 49(4), 487-500.

26.

DiGiacomo, E. V. (1991). Consignment and or Scheduling: How Cpts Improve Operating Room Efficiency. Hospital Materiel Management Quarterly, 13(1), 22-26.

27.

Disney, S. M., Naim, M. M., & Potter, A. (2004). Assessing the Impact of E-Business on Supply Chain Dynamics. International Journal of Production Economics, 89(2), 109-118.

28.

Fang, X., So, K. C., & Wang, Y. (2008). Component Procurement Strategies in Decentralized Assemble-to-Order Systems with Time-Dependent Pricing. Management Science, 54(12), 1997-2001.

29.

Fenton, R. D., & Sanborn, B. A. (1987). Consignment Purchasing: From Industry to Health Care. Hospital Materiel Management Quarterly, 8(4), 1-7.

30.

Gavirneni, S., Kapuscinski, R., & Tayur, S. (1999). Value of Information of Capacitated Supply Chains. Management Science, 45(1), 16-24.

31.

Gerber, N. (1987). Consignment in Health Care: When and Why. Hospital Materiel Management Quarterly, 8(4), 8-12.

32.

Gerber, N. (1991). Objective Comparisons of Consignment, Just-in-Time, and Stockless. Hospital Materiel Management Quarterly, 13(1), 10-17.

33.

Gerchak, Y., & Khmelnitsky, E. (2003). A Consignment System Where Suppliers Cannot Verify Retailer's Sales Reports. International Journal of Production Economics, 83(1), 37-43.

34.

Gumus, M., Jewkes, E. M., & Bookbinder, J. H. (2008). Impact of Consignment Inventory and Vendor-Managed Inventory for a Two-Party Supply Chain. International Journal of Production Economics, 113(2), 502-517.

35.

Guo, P., Song, J. S., & Wang, Y. (2010). Outsourcing Structures and Information Flow in a Three-Tier Supply Chain. International Journal of Production Economics, 128(1), 175-187.

36.

Hackett, S. C. (1993). Consignment Contracting. Journal of Economic Behavior & Organization, 20(2), 247-253.

37.

Harding, M. L. (1999). Designing Automatic Resupply Systems. Hospital Materiel Management Quarterly, 20(3), 37-41.

38.

Hariga, M. A., & Al-Ahmari, A. (2013). An Integrated Retail Space Allocation and Lot Sizing Models under Vendor Managed Inventory and Consignment Stock Arrangements. Computers & Industrial Engineering, 64(1), 45-55.

39.

Hill, R. M. (1997). The Single-Vendor Single-Buyer Integrated Production-Inventory Model with a Generalized Policy. European Journal of Operational Research, 97(3), 493-499.

40.

Hill, R. M. (1999). The Optimal Production and Shipment Policy for the Single-Vendor Single Buyer Integrated Production-Inventory Problem. International Journal of Production Research, 37(11), 2463-2475.

41.

Hung, J. S., Fun, Y. P., & Li, C. C. (1995). Inventory Management in the Consignment System. Production and Inventory Management Journal, 36(4), 1-6.

42.

Iyer, A. V., & Bergen, M. E. (1997). Quick Response in Manufacturer-Retailer Channels. Management Science, 43(4), 559-570.

43.

Jiang, L. (2012). The Implications of Postponement on Contract Design and Channel Performance. European Journal of Operational Research, 216(2), 356-366.

44.

Kim, Dong-Ho, Kim, Sung-Soo, Jung, Myung-Hee, & Youn, Myoung-Kil (2014). A Comparative Analysis of Teukyakmeip and Consignment. Journal of Distribution Science, 12(4), 5-9.

45.

Kim, Tae-Ryong, & Song, Jang-Gwen (2013). The Effect of Asset Specificity, Information Sharing, and a Collaborative Environment on Supply Chain Management (Scm): An Integrated Scm Performance Formation Model. Journal of Distribution Science, 11(4), 51-60.

46.

Lee, H., & Whang, S. (1999). Decentralized Multi-Echelon Supply Chains: Incentives and Information. Management Science, 45(5), 633-640.

47.

Lee, H., So, K.C, & Tang, C.S. (2000). The Value of Information Sharing in a Two-Level Supply Chain. Management Science, 46(5), 626-643.

48.

Li, S., Zhu, Z., & Huang, L. (2009). Supply Chain Coordination and Decision Making under Consignment Contract with Revenue Sharing. International Journal of Production Economics, 120(1), 88-99.

49.

Nagarajan, M., & Rajagopalan, S. (2008). Contracting under Vendor Managed Inventory Systems Using Holding Cost Subsidies. Production & Operations Management, 17(2), 200-210.

50.

North, L. (1987). Why Not Consignment? A Guide to Increasing the Influence of Material Management. Hospital Materiel Management Quarterly, 8(4), 55-59.

51.

Persona, A., Grassi, A., & Catena, M. (2005). Consignment Stock of Inventories in the Presence of Obsolescence. International Journal of Production Research, 43(23), 4969-4988.

52.

Raghunathan, S. (1999). Interorganizational Collaborative Forecasting and Replenishment Systems and Supply Chain Implications. Decision Sciences, 30(4), 1053-1071.

53.

Ru, J., & Wang, Y. (2010). Consignment Contracting: Who Should Control Inventory in the Supply Chain? European Journal of Operational Research, 201(3), 760-769.

54.

Ryu, Chungsuk (2006). An Investigation of Impacts of Advanced Coordination Mechanisms on Supply Chain Performance:Consignment, Vmi I, Vmi Ii, and Cpfr. Buffalo, NY U.S.A.: Thesis for Doctorate in the State University of New York at Buffalo.

55.

Ryu, Chungsuk (2007). Review of Supply Chain Coordination:Information Sharing, Cost Payment, and Decision Authority. Journal of the Korean Society of Supply Chain Management, 7(1), 25-35.

56.

Sari, K. (2008). On the Benefits of Cpfr and Vmi: A Comparative Simulation Study. International Journal of Production Economics, 113(2), 575-586.

57.

Savasaneril, S., & Erkip, N. (2010). An Analysis of Manufacturer Benefits under Vendor-Managed Systems. IIE Transactions, 42(7), 455-477.

58.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2000). Designing and Managing the Supply Chain; Concepts, Strategies, and Case Studies (4th ed.). McGraw-Hill Higher Education.

59.

Sjoerdsma, M. (1991). Consignment: Present and Future. Hospital Materiel Management Quarterly, 13(1), 6-9.

60.

Sui, Z., Gosavi, A., & Lin, L. (2010). A Reinforcement Learning Approach for Inventory Replenishment in Vendor-Managed Inventory Systems with Consignment Inventory. Engineering Management Journal, 22(4), 44-53.

61.

Valentini, G., & Zavanella, L. (2003). The Consignment Stock of Inventories: Industrial Case and Performance Analysis. International Journal of Production Economics, 81/82(1), 215-224.

62.

Wadhwa, S., Mishra, M., Chan, F. T. S., & Ducq, Y. (2010). Effects of Information Transparency and Cooperation on Supply Chain Performance: A Simulation Study. International Journal of Production Research, 48(1), 145-166.

63.

Wang, S. P., Lee, W., & Chang, C. Y. (2012). Modeling the Consignment Inventory for a Deteriorating Item While the Buyer Has Warehouse Capacity Constraint. International Journal of Production Economics, 138(2), 284-292.

64.

Wang, W., Yuan, Y., Archer, N., & Guan, J. (2005). Critical Factors for Cpfr Success in the Chinese Retail Industry. Journal of Internet Commerce, 4(3), 23.

65.

Wang, Y., Jiang, L., & Shen, Z. J. (2004). Channel Performance under Consignment Contract with Revenue Sharing. Management Science, 50(1), 34-47.

66.

Webster, J. (1995). Networks of Collaboration or Conflict? Electronic Data Interchange and Power in the Supply Chain. The Journal of Strategic Information Systems, 4(1), 31-42.

67.

Williams, M. K. (2000). Making Consignment and Vendor-Managed Inventory Work for You. Hospital Materiel Management Quarterly, 21(4), 59-63.

68.

Zanoni, S., & Grubbstrom, R. W. (2004). A Note on an Industrial Strategy for Stock Management in Supply Chains: Modeling and Performance Evaluation. International Journal of Production Research, 42(20), 4421-4426.

69.

Zanoni, S., Jaber, M. Y., & Zavanella, L. E. (2012). Vendor Managed Inventory (Vmi) with Consignment Considering Learning and Forgetting Effects. International Journal of Production Economics, 140(2), 721-730.

70.

Zavanella, L., & Zanoni, S. (2009). A One-Vendor Multi-Buyer Integrated Production-Inventory Model: The 'Consignment Stock' Case. International Journal of Production Economics, 118(1), 225-232.

71.

Zhang, D., de Matta, R., & Lowe, T. J. (2010). Channel Coordination in a Consignment Contract. European Journal of Operational Research, 207(2), 897-905.

72.

Zhao, X., & Shi, C. (2011). Structuring and Contracting in Competing Supply Chains. International Journal of Production Economics, 134(2), 434-446.

The Journal of Distribution Science