The effects of lumpy demand and shipment size constraint: A response to “Revisit the note on supply chain integration in vendor-managed inventory”

This paper responds to a comment by Wang et al. [3] regarding the disagreement between Yao et al. [4] and van der Vlist et al. [2] on the impact of vender-managed-inventory (VMI). We explore the factors which affect the shipment size from the vendor to the buyer and identify the conditions where the shipment size will increase/decrease under VMI. A numerical example also shows when and how the inventory shifts between the supplier and the buyer.