Vendor Managed Inventory


The concept provides information on the ways vendor managed inventory (VMI) program can benefit an organisation. It reviews the three key elements of a successful VMI programme, its implementation steps and success factors.

Technique Overview

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). This type of agreement is also known as supplier managed inventory, continuous replenishment programme, or supplier-assisted inventory replenishment.

Vendor Managed Inventory Description *

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Business Evidence

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Examples of Vendor Managed Inventory *

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Business Application

Vendor Managed Inventory Implementation *

Success Factors of Vendor Managed Inventory *

Measures of Vendor Managed Inventory *

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Professional Tools

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Further Reading

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Vendor Managed Inventory References (4 of up to 20) *

  • Abraham, D. and Leon, L. (2006) Knowledge Management in Supply Chain Networks. In E.Coakes and S.Clarke, eds. Encyclopedia of Communities of Practice in Information and Knowledge Management. Idea Group: London.
  • Braithwaite, A. and Samakh, E. (1998) The Cost-to-Serve Method. International Journal of Logistics Management, Vol.(1), pp.69-84.
  • Cachon, G. and Fisher, M. (1997) Campbell Soup's Continuous Replenishment Program: Evaluation and Enhanced Inventory Decision Rules. Production and Operations Management, Vol.6(3), pp.266-276.
  • Cetinkaya, S. and Lee, C.Y. (2000) Stock Replenishment and Shipment Scheduling for Vendor Managed Inventory Systems. Management Science, Vol.46(2), pp.217-232.

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