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What is Vendor-Managed Inventory (VMI)

University-Industry Technology Transfer in the UK: Emerging Research and Opportunities
A business model whereby the vendor of goods manages the supply of those products into the buyer’s warehouse or store. This requires the buyer to provide details regarding inventory levels and order quantities to the supplier.
Published in Chapter:
Product Assembly, Sales, and Marketing
DOI: 10.4018/978-1-5225-7408-8.ch005
Abstract
In developing and executing IS strategy, current business processes are analyzed, modified, or redefined in order to better support company strategic objectives and targets. Process analysis—an integral part of IS strategy development—can identify problems of information flow, data maintenance, systems integration, and process alignment with business strategy. Technology transfer projects in two product assembly companies are examined here. These projects developed and implemented IS strategies to align with contrasting business objectives: to provide stability and customer retention on the one hand and to provide key management information to support increased profitability on the other.
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Supply Chain Integration, Collaboration, and Coordination
A family of business models in which the buyer of a product (business) provides certain information to a vendor (supply chain)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).
Full Text Chapter Download: US $37.50 Add to Cart
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