Keywords

vendor-owned inventory management, retailer–vendor relationships, agency theory

Abstract

This paper undertakes two related tasks to augment current understanding regarding vendor-owned inventory management (VOIM) arrangements implemented in the retail industry. The first task formally juxtaposes three prevalent forms of VOIM arrangements (i.e., Consignment, Pay-On-Scan, and Scan-Based Trading) to one another and identifies three dimensions (i.e., Relevant Data Visibility, Timeliness of Information Release, and Shrink Responsibility) that serve to discriminate among them. The second task applies an Agency Theory lens to uncover differing profiles of characteristics underlying the retailer-vendor relationship across the Consignment, Pay-On-Scan, and Scan-Based Trading arrangements. These conceptual results contribute to and have implications for the science and practice of VOIM arrangements in the retail industry

Original Publication Citation

Rungtusanatham, M., E. Rabinovich, B. Ashenbaum, C. Wallin. 2007. “Vendor-Owned Inventory Management Arrangements in Retail Operations: An Agency Theory Perspective.” Journal of Business Logistics 28(1), 111-135.

Document Type

Peer-Reviewed Article

Publication Date

2007

Publisher

Journal of Business Logistics

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Associate Professor

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Marketing Commons

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