Introducing a unique inventory control framework for centralized VMI and JIT production

The purpose of this research is to develop a new Information Fractal Structure (IFS) framework to facilitate communication and collaboration between centralized Vendor-Managed- Inventory (VMI) and Just-In-Time production to optimize inventory and logistics cost throughout the supply network. The proposed framework is conceptually developed, validated and implemented using mathematical and simulation modelling. Experimental factorial design and statistical techniques (MANOVA) are used to generate and analyze the results. The results demonstrated that the application of the proposed IFS provided a new effective collaboration protocol between centralized VMI and core manufacturer. Furthermore, the IFS led to an increase in both collaboration and integration and improve the process of sharing information across the network, which has proven to be a problematic area for industrialists.