(http://www.binaryspectrum.com/industries/retail/VendorManagedInventory.html)
But what does it tell us? What is Vendor Managed Inventory?
According to 12manage VMI is a supply chain practice. The inventory is monitored, planned and managed by the vendor as ordered by the consuming firm. It is "based on the expected demand and on previously agreed minimum and maximum inventory levels."
On http://www.vendormanagedinventory.com/definition.php it is explained in similar words. For them VMI means to have an optimized Supply Chain with higher performance in which the manufacturer is responsible for maintaining the distributor’s inventory levels. It can be reached by giving the manufacturer access to the distributor’s inventory data and by making him responsible for generating purchase orders.
