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Management Studies

Explain what is meant by Vendor Management Inventory (VMI) and discuss fully how the application of VMI can help in reduction of demand amplification.

Additional Requirement

The question is a part of Operations Management and here it is define about Vendor Management Inventory. Vendor management inventory provides information to retailers and distributors about the inventory requirement. In this case, the manufacturer takes the responsibility of notifying the vendor or the distributor about their inventory levels and replenishes the inventory levels based on their scale of credit. This concept is now widely popular and is being patronized by many manufacturers and it helps in retaining the customers, in this case the retailers or the distributors.

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Operation Management, Management Studies

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