Abstract
ABSTRACTVendor-managed inventory (VMI) is a case of supply chain management (SCM) approaches in which the customer of a product provides certain information to a vendor of that product and the vendor takes full responsibility for maintaining an agreed inventory of the material, usually at the customer’s consumption location or store. The function of a computerised bill of materials (BOM) module plays an important role in supporting VMI collaborations. This paper presents a VMI case study, identifies the side effects by the VMI collaboration and proposes a data mining-based decision support module to generate planning BOM. It is an embed module for an enterprise resource planning (ERP) system to reduce those risks caused via VMI collaboration. A real-world industry case study is utilised to demonstrate the merits of the proposed approach.
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