Vendor-Managed Inventory
Vendor-Managed Inventory (VMI) is a supply chain arrangement in which the supplier (vendor) has visibility into the customer's inventory levels and assumes responsibility for replenishing inventory to pre-agreed levels. Rather than customers placing orders based on internal forecasts, the supplier monitors actual consumption and triggers replenishment shipments automatically. VMI reduces administrative burden, minimizes stock-outs, improves cash flow (by reducing inventory in the supply chain), and fosters collaboration between supplier and customer.
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- Disney, S. M., & Towill, D. R. (2006). Vendor-managed inventory: A taxonomy of approaches and implications. International Journal of Production Economics, 106(2), 440-456. · URL
- Smaros, J., Holström, J., Kärkkäinen, M., & Ala-Risku, T. (2003). Collaborative forecasting and planning in grocery supply chains. International Journal of Operations & Production Management, 23(9), 998-1020. · URL
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