Optimization of a continuous credit based vmi distribution system in the consumer goods supply chain

Abstract

Globalization is a muchdiscussed phenomenon in developing newlinecountries The free economy that is attempted through the liberalization newlineprocess culminates in the opening up of markets and fast moving consumer newlinegoods FMCG companies in developing countries are facing higher levels of newlinecompetition from multinational companies MNC which are better newlineorganized and have considerable experience Even though the profit margin is newlinelow the retailers prefer to keep branded products of MNCs in their shops due newlineto high demand from customers The distributors of domestic FMCG have to newlinestruggle a good deal to capture and retain their market share from the market newlineleaders They have to implement new supply policies such as credit supply newlineapart from VMI system implementation timely delivery return of unsold newlineexpired goods etc newline newline newline