An Integrated Vendor Managed Inventory with Consignment Stock Model for Single- Vendor Single-Retailer Considering Imperfect Quality and Inspection Error

Key Points

• To explore an integrated vendor managed inventory model with consignment stock that accounts for imperfect quality and inspection errors.
• Developed a mathematical model for inventory management under specific conditions.
• Analyzed the impacts of inspection errors and quality issues on inventory levels and costs.
• Used simulations to compare traditional and integrated inventory systems.
• The integrated model reduced overall inventory costs by 15%.
• Imperfect quality and inspection errors increased total replenishment time by 20%.
• Improved stock availability resulted in a 10% increase in sales for the retailer.