Comparing periodic inventory policies applied within the framework of VMI approach

The Vendor Management Inventory (VMI) is an integrated approach for customer-supplier coordination in which the supplier is responsible for the management of inventory at the retailer. In this paper, we consider the three periodic inventory policies applied within the framework of VMI approach. The aim is to determine the best policy that minimize the total cost composed by the production cost, the inventory cost at the customer and the supplier and the distribution cost.