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back to us warehouse management, Shapiro shared However, if existing inventory management processes are simply transferred from customer to supplier, VMI results will suffer Vinay Asgekar, an analyst at AMR Research, advises, To realize benefits from VMI programs, companies need to focus on collaborative practices and customer relationships Defining VMI Though much has been written on and discussed about the practice of VMI, definitions vary, especially among practitioners, primarily because of the way they each manage the process For example, Anne Marie Haberkorn, CFPIM, CIRM, a former inventory control manager and VMI practitioner now on the faculty of Fox Valley Technical College, describes VMI as strategically linking the supplier to the customer through data She maintains that the supplier plays a large role in VMI because they take on the responsibilities of inventory management and replenishment.

Department of Obstetrics and Gynecology, University of North Carolina School of Medicine, Chapel Hill, NC, USA

CONCLUDING COMMENTS Pub. L. No. 94 142 was enacted almost 30 years ago. Amendments, court interpretations, changing rules and regulations, and policy statements have further shaped special education law. Education law will continue to change. School psychologists must keep abreast of these changes to ensure that the educational rights of pupils are safeguarded.

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To accomplish this, Haberkorn explained at Congress for Progress that the supplier must have access to the customer s data, including sales history and forecast Howard sees VMI as an arrangement where a supplier and a customer decide when and how much of a customer s stock is replenished using EDI This is a way to cut costs and keep inventory levels low throughout the supply chain, he explained at Interlog 2004 Winter Scott Brown, CPIM (supply chain manager), and Donald Hess (supply chain solutions manager) of Plexus Corporation believe that the objective of VMI is to delay the transfer of title for this inventory until the latest possible instant, ideally until the point of actual consumption James Truog, CPIM, CPM manager of strategic purchasing at Wacker Corporation, declares, Vendor-managed inventory is a lean strategy in which the supplier is totally responsible for effective supply.

Fig. 9.12 Backup GPs clock steering parameters for POR (Santa Paula, CA).

The VMI program at Wacker, he stated at the 46th Annual APICS International Conference was designed to eliminate nonvalueadded labor and repetitive waste for both us and the supplier Meanwhile, Mark Lincoln, CPIM, director of global supply chain management for Stryker Instruments, defines VMI succinctly: Give our suppliers all the necessary information they need, give it to them real-time, and let them be an extension of us and help us manage our component inventory Putting VMI into Play AMR s Asgekar observes, VMI programs differ from customer to customer, but we also found general differences between VMI programs supporting manufacturers and those supporting retailers The differences tend to promote the adoption of certain best practices in these sectors Manufacturing companies ask suppliers for consignment arrangements, whereas retailers have not demanded this from their suppliers in the past.

We next present the solution method for this problem. The idea is to make simplifying assumptions about the cost of each technology that allow one to plot the annual per MW cost as a function of time of operation. Cost curves for different technologies generally intersect as a function of the time in operation. Intersections denote a point of change in the selection decision. Matching the cost curves against the incremental load and reserve requirements for the speci ed year provides the optimal solution. We illustrate this technique with an example. Consider two decision variables associated with two technologies, each having the following corresponding cost curves. Cost1(X) = 82,736 + 56.91X Cost2(X) = 63,270 + 79.50X X is the hours of operation. The units for cost curves are $ per MW. Figure 5.2 provides a plot of the cost curves. Note that the cost curves intersect at the point X = 862 hours. Below 862 hours of operating time, Technology 2 is the optimal choice. Above 862 hours of operating time, Technology 1 is the optimal choice. All that remains to solve the problem is to determine the annual incremental MW requirement for units that operate less than 862 hours and units that operate greater than 862 hours. Suppose that an incremental hourly load forecast is available. Each hourly number represents the incremental hourly energy requirement or the

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This may change with scan-based trading technology that allows retail stores to pay the suppliers when the goods are scanned through a POS [point-of-sale] system, Asgekar notes..

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