Vendor Managed Inventory - What is vendor managed inventory explain with an example?

Q: What is vendor managed inventory explain with an example?

Vendor Managed Inventory Definition Vendor managed inventory (VMI) is a supply chain agreement where an upstream agent (e.g. supplier or manufacturer) takes control of the inventory management decisions for one or more downstream agents (e.g. retailers) (Fry, 2011).

Answer

Inventory Management by Vendors One type of supply chain agreement is known as vendor managed inventory (VMI), and it occurs when a party further up the chain, such as a supplier or manufacturer, agrees to oversee the inventory management decisions made by a party farther down the chain, such as a retailer (Fry, 2011).

Vendor Managed Inventory - What is vendor managed inventory explain with an example?

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