Evaluation of Vendor Managed Inventory Elements in Manufacturing Sector Using ANOVA Technique

Today the market is moving toward multiformity, and it requires a variety in products, which in turn generates variation in demand that gives rise to many managerial problems such as planning, forecasting, production, inventory management, and timely distribution. To minimize the level of risk due to variation in demand, from raw materials to final customers, the whole process should undergo innovative and revolutionary changes. Organizations must emphasize on gaining competitive advantage by managing their supply chains in the most effective manner. Inventory performance directly connects to the success of supply chain management. This study attempts to find various Vendor Managed Inventory (VMI) elements which are important to both the customer and the manufacturer (vendor) in the Indian context. This paper presents the relative importance and difficulties in the implementation of VMI elements in the manufacturing sector and the results are subjected to Analysis of Variance (ANOVA). The study also identifies the VMI elements which are most important and easy to implement in the manufacturing industries