Vendor managed inventory performance in Malaysian manufacturing companies

The implementation of the Vendor Managed Inventory (VMI) in the Malaysian manufacturing sector can be viewed as a solution to mitigate the increment of operational costs and low performance in customer services. Many factors contributed to the performance of the VMI programme, but only a few attempt...

Full description

Saved in:
Bibliographic Details
Main Author: Kamaruddin, Radzuan
Format: Thesis
Language:en
en
Published: 2015
Subjects:
Online Access:https://etd.uum.edu.my/4954/1/s92071.pdf
https://etd.uum.edu.my/4954/2/s92071_abstract.pdf
https://etd.uum.edu.my/4954/
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1833436416827195392
author Kamaruddin, Radzuan
author_facet Kamaruddin, Radzuan
author_sort Kamaruddin, Radzuan
building UUM Library
collection Institutional Repository
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
continent Asia
country Malaysia
description The implementation of the Vendor Managed Inventory (VMI) in the Malaysian manufacturing sector can be viewed as a solution to mitigate the increment of operational costs and low performance in customer services. Many factors contributed to the performance of the VMI programme, but only a few attempts were made to determine the contribution of the VMI elements and the organizational factors on VMI performance; and the influence of the types of products in this relationship. The objectives of this study were to determine the relationship and to examine the impact of the VMI elements, the organizational factors on VMI performance, and the moderating effect of the types of products on the relationship between the VMI elements, the organizational factors and VMI performance. The study used the survey method. Data were tested from 101 manufacturing companies listed in the Federation of Malaysian Manufacturers. The findings from the Pearson Correlation test showed that inventory location, managerial commitment, decentralized decision- making, information- system capability and trust have significant and positive relationships with cost performance. Meanwhile, inventory location, demand visibility, inventorycontrol limits, managerial commitment, information- system capability, and trust have significant and positive relationships with service performance. In addition, the multiple regression analysis showed that demand visibility, inventory- control limits, inventory location, trust, and managerial commitment contribute to VMI performance. The hierarchical regression analyses revealed that the types of products have a significant moderating effect to warrant desirable performance from demand visibility, inventory location, inventory control limits, and inventory- ownership. Therefore, the implementation of VMI in the Malaysian manufacturing sector needs to share demand information, apply minimum and maximum limits for inventory control, locate storage locations near customer premises, establish trust, and provide sufficient managerial commitment to benefit from the VMI programme. This study also suggests that the application of inventory- control limits on innovative products would decrease the cost performance of VMI. Also, inventory- ownership by the supplier on functional products would decrease the service performance of VMI
format Thesis
id my.uum.etd-4954
institution Universiti Utara Malaysia
language en
en
publishDate 2015
record_format eprints
spelling my.uum.etd-49542021-03-18T08:21:34Z https://etd.uum.edu.my/4954/ Vendor managed inventory performance in Malaysian manufacturing companies Kamaruddin, Radzuan HB Economic Theory HD28-70 Management. Industrial Management The implementation of the Vendor Managed Inventory (VMI) in the Malaysian manufacturing sector can be viewed as a solution to mitigate the increment of operational costs and low performance in customer services. Many factors contributed to the performance of the VMI programme, but only a few attempts were made to determine the contribution of the VMI elements and the organizational factors on VMI performance; and the influence of the types of products in this relationship. The objectives of this study were to determine the relationship and to examine the impact of the VMI elements, the organizational factors on VMI performance, and the moderating effect of the types of products on the relationship between the VMI elements, the organizational factors and VMI performance. The study used the survey method. Data were tested from 101 manufacturing companies listed in the Federation of Malaysian Manufacturers. The findings from the Pearson Correlation test showed that inventory location, managerial commitment, decentralized decision- making, information- system capability and trust have significant and positive relationships with cost performance. Meanwhile, inventory location, demand visibility, inventorycontrol limits, managerial commitment, information- system capability, and trust have significant and positive relationships with service performance. In addition, the multiple regression analysis showed that demand visibility, inventory- control limits, inventory location, trust, and managerial commitment contribute to VMI performance. The hierarchical regression analyses revealed that the types of products have a significant moderating effect to warrant desirable performance from demand visibility, inventory location, inventory control limits, and inventory- ownership. Therefore, the implementation of VMI in the Malaysian manufacturing sector needs to share demand information, apply minimum and maximum limits for inventory control, locate storage locations near customer premises, establish trust, and provide sufficient managerial commitment to benefit from the VMI programme. This study also suggests that the application of inventory- control limits on innovative products would decrease the cost performance of VMI. Also, inventory- ownership by the supplier on functional products would decrease the service performance of VMI 2015 Thesis NonPeerReviewed text en https://etd.uum.edu.my/4954/1/s92071.pdf text en https://etd.uum.edu.my/4954/2/s92071_abstract.pdf Kamaruddin, Radzuan (2015) Vendor managed inventory performance in Malaysian manufacturing companies. PhD. thesis, Universiti Utara Malaysia.
spellingShingle HB Economic Theory
HD28-70 Management. Industrial Management
Kamaruddin, Radzuan
Vendor managed inventory performance in Malaysian manufacturing companies
title Vendor managed inventory performance in Malaysian manufacturing companies
title_full Vendor managed inventory performance in Malaysian manufacturing companies
title_fullStr Vendor managed inventory performance in Malaysian manufacturing companies
title_full_unstemmed Vendor managed inventory performance in Malaysian manufacturing companies
title_short Vendor managed inventory performance in Malaysian manufacturing companies
title_sort vendor managed inventory performance in malaysian manufacturing companies
topic HB Economic Theory
HD28-70 Management. Industrial Management
url https://etd.uum.edu.my/4954/1/s92071.pdf
https://etd.uum.edu.my/4954/2/s92071_abstract.pdf
https://etd.uum.edu.my/4954/
url_provider http://etd.uum.edu.my/