Revisiting Lean Manufacturing Process With Vendor Managed Inventory System

Due to global competitive, countries striving for economic growth and competitive advantage are focusing on manufacturing process and supply chain with vendor managed inventory policy. The aims are to reduce costs, eliminate waste, shorten lead time and enhance competitiveness. This study applies lean manufacturing with VMI (Vendor Managed Inventory) to shorten lead time and reduce inventories. The study also applies TOC (theory of constraints), 5W1H (who, when, where, which, what, how much) techniques to identify bottleneck and suggest continuous improvements in production, sales and supply chain management. The objective is to develop a framework to improve overall efficiency and ensure profitable business performance.