In a VMI system, the inventory is...
Understand the Problem
The question is asking which party owns the inventory in a Vendor Managed Inventory (VMI) system and when the ownership is transferred.
Answer
In a VMI system, the supplier manages the inventory at the customer's location.
In a Vendor Managed Inventory (VMI) system, the supplier manages the inventory levels of its products at the customer's location. The supplier monitors the customer's sales and stock levels and replenishes inventory as needed.
Answer for screen readers
In a Vendor Managed Inventory (VMI) system, the supplier manages the inventory levels of its products at the customer's location. The supplier monitors the customer's sales and stock levels and replenishes inventory as needed.
More Information
VMI helps reduce both shortages and surpluses, ensuring optimal stock levels are maintained.
Tips
A common mistake is thinking the customer manages the inventory in a VMI system. It's actually the supplier's responsibility.
Sources
- What is vendor-managed inventory (VMI)? | Definition from TechTarget - techtarget.com
- What Is Vendor-Managed Inventory (VMI)? - NetSuite - netsuite.com
- Vendor-managed inventory - Wikipedia - en.wikipedia.org
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