%0 Research article
%T Vendor managed inventory in wood processing industries – a case study
%A Gronalt, Manfred
%A Rauch, Peter
%D 2008
%J Silva Fennica
%V 42
%N 1
%R doi:10.14214/sf.267
%U https://silvafennica.fi/article/267
%X Solid structure timber (SST) is an important building material in the  wood construction business, in which its production volume is largely  related to that respective business. Due to the large variability in the  demand and seasonal factors, SST producers’ inventories are likely to  be simultaneously overstocked for one type of timber and out of stock of  another. An inventory policy that ensures a high service level and  relatively low stocks is required. In the present paper, we propose the  vendor managed inventory (VMI) approach for controlling the stock of  deals that are produced at a sawmill and delivered as raw material for  SST-production. We evaluate two VMI implementations against the actual  inventory management for three different market scenarios. Furthermore,  we layout the necessities for reconfiguring the business processes, and  subsequently set up an organisational framework within VMI, which is  indeed applicable in this segment of the woodworking industry. In our  application background, VMI as an inventory control system is able to  reduce the overall raw material stock by more than 37% by simultaneously  increasing the SST service level.