VMI
Supply Chain
VMI (Vendor-Managed Inventory)
Vendor-Managed Inventory
Arrangement in which the supplier monitors customer inventory and takes responsibility for replenishment decisions.
Examples
- 01Under VMI, the screw supplier checks stock in the customer's warehouse twice a week and refills it without purchase orders.
- 02The monthly VMI review compares stock levels, service level and agreed minimum and maximum quantities.
- 03When VMI stock falls below the minimum, the supplier and the customer's planner agree on an urgent delivery.