Files
markitect-main/examples/supply-chain-vsm/output/entities/vendor-managed-inventory.md
tegwick 574bb11db6 feat(example): add supply-chain-vsm composition demo (S3.5)
Demonstrates infospace composition: the Wealth of Nations infospace is
used as a discipline, applying Smith's economic framework as a lens to
analyse modern supply chain management concepts.

New example: examples/supply-chain-vsm/
- infospace.yaml binding WoN as discipline (../infospace-with-history)
- 3 source documents: coordination mechanisms, capital & inventory,
  market structure (~400 words each, original content)
- supply-chain-entity-schema-v1.0.md with WoN Concept required section
- won-mapping-schema-v1.0.md with Conceptual Continuity rating
- artifacts/won-reference/core-entities.md — 12 curated WoN entities
  for injection as discipline context
- 8 hand-crafted entity files demonstrating LLM output format
- 3 mapping files with full rationale and VSM inheritance chains
- Viable: YES (5/5 thresholds)

Key mappings demonstrated:
  Demand Signal          → Effectual Demand        (Strong, S2)
  Vendor-Managed Inventory → Division of Labour    (Strong, S1/S2)
  Just-in-Time Inventory → Circulating Capital     (Strong, S1/S3)
  Bullwhip Effect        → Natural Price           (Moderate, S2)
  Platform Intermediary  → Merchant Capital        (Strong, S2/S4)
  Monopsony Power        → Combination of Masters  (Strong, S3*)

Platform fix: entity_parser.py now recognises ## Supply Chain Domain
as a domain alias for ## Economic Domain, enabling composed infospaces
to use their own domain section name.

Tutorial §13 rewritten with real commands, real output, and the full
mapping table from the demo.

Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
2026-02-23 00:08:51 +01:00

1.5 KiB

Vendor-Managed Inventory

Definition

A supply chain coordination arrangement in which the supplier takes responsibility for maintaining stock levels at the buyer's location, using shared inventory data to trigger automatic replenishment. Payment occurs at point of consumption rather than delivery. The buyer surrenders operational control over replenishment in exchange for reduced administrative burden and improved demand signal quality.

Source

Coordination Mechanisms in Modern Supply Chains, §Vendor-Managed Inventory

Supply Chain Domain

Coordination

VSM Assignment

S2 — VMI is a formal coordination mechanism that assigns the replenishment function to the party best positioned to perform it. It reduces oscillation (the bullwhip) by giving the upstream party direct visibility of consumption rather than batched orders.

WoN Concept

Division of Labour — VMI is an application of Smith's division of labour principle at the inter-firm level. The inventory management function — previously split between buyer (demand tracking) and supplier (order fulfilment) with coordination friction between them — is consolidated with the supplier, who has the information and capability to perform it most efficiently. The functional specialisation reduces transaction costs and improves the quality of the upstream demand signal, mirroring Smith's argument that specialisation improves output quality and reduces waste.