This article considers the various companies conflicting objectives and the complex network design to produce and distribute the products according to the customers demand to determine the benefits of the Collaborative planning, forecasting and replenishment (CPFR) and Vendor Managed Inventory (VMI) at significant level.

The research of significant influence between Collaborative planning, Forecasting and replenishment (CPFR) and Vendor Managed Inventory(VMI) on the organization using simulation study is done in this article. This article embraces the Traditionally Managed Supply Chain (TSS) as the basis for the decision on the significance of the CPFR and VMI. To analyze the performance of the CPFR and VMI that is known to be the two popular supply chain initiatives in the Supply Chain Management we construct a comprehensive model.

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Traditionally Managed Supply Chain (TSS) is included in the model as a benchmark to analyze the performance of the CPFR and VMI in the Supply chain network of the organization. In this article at some extent is inclined to reduce the bullwhip effect in the supply chain network that is aligned to TSS for the basis of the performance measurement between the 2 supply chain initiatives. Study till now suggests that the CPFR has a major influence in the system of supply chain than the VMI provided with some limitations such as the short lead times and tight manufacturing capacity. In such cases detailed and meticulous analysis on consideration of CPFR or VMI is to be done which is proposed in the further article.1.Introduction:Supply chain consisting of several organization is have conflicting ideas to manufacture and distribute the products according to the forecasted demand in push system and demand according to the pull system. Finding the best strategy while coordinating with the supply chain cross functionally has always been a concern and is the difficult task when comes to complex network facilities. The key to bring success in the complex network facilities design is by effective and intensive communication and coordination.

Intensive communication and effective coordination have a major influence in the process of the supply chain. This kind of approach could assist in the process optimization of the supply chain. Thankfully, evolution of management techniques such as Lean Thinking, Total quality management and continuous improvement and embracing these