Coordinating inventory in collecting raw milk. Case Region Sugamuxi - Colombia

Abstract

This work is based on the principles of Supply Chain Management, the relationship between two nodes belonging to the milk production chain in Sugamuxi (Boyaca, Colombia), and a supply policy determination from an inventory coordination methodology in which, the node with more negotiation power, i.e. the group of store centers, will be responsible for managing the inventory levels of the other node (the producers) in order to minimize the total operative cost. It is possible to assess that there exists an opportunity to improve the global performance of this supply chain, by means of the VMI (Vendor Management Inventory) principles and the changes included by Yao's model [1]; with the purpose of getting a decrease in the system's total cost.