Vendor Managed Inventory, (VMI), describes a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's consumption location (usually a store). VMI makes it less likely that a business will unintentionally become out of stock of a good and reduces inventory in the supply chain. This is one of the successful business models used by Wal-Mart. VMI will help foster a closer understanding between the supplier and manufacturer by using Electronic Data Interchange and other statistical methodologies to forecast and maintain correct inventory in the supply chain. The term business model is relatively recent. ... This article is about business inventory. ... This article is about business inventory. ... Wal-Mart Stores, Inc. ... Electronic Data Interchange (EDI) is the computer-to-computer exchange of structured information, by agreed message standards, from one computer application to another by electronic means and with a minimum of human intervention. ... To meet Wikipedias quality standards, this article or section may require cleanup. ...
VendorManagedInventory, (VMI), describes a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's consumption location (usually a store).
VMI makes it less likely that a business will unintentionally become out of stock of a good and reduces inventory in the supply chain.
This is main mantra behind success of world's number one retailer the Wal mart.
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.
Using the analogy of a freeway, traffic flow theorist Carlos Daganzo of the Institute of Transportation Studies at Berkeley found that failures in the supply chain tend to be caused by bottlenecks at the consumer end of the supply chain, which caused ripple effects all the way back to the supplier (the bullwhip effect).
The just in time inventory strategy is an example of a strategy that addresses this problem of supply chain management, but it is, of course, not applicable at all levels of demand.
Feeds |
Contact