VENDOR MANAGED INVENTORY Definition

Bookmark and Share

VENDOR MANAGED INVENTORY (VMI) is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. Vendor Managed Inventory was first applied to the grocery industry, between companies like Procter & Gamble (supplier) and Wal-Mart (distributor). But increasingly, Vendor Managed Inventory is providing the benefits of smoother demand, increased sales, lower inventories and reduced costs to other industries.

Learn new Accounting Terms

AUKSINAS (AUKSINU, AUKSINAI) is the currency of Lithuania.

RUNNING RATE is a sustained constant rate, often the only important single rate except for zero observed under a given schedule (as in some ratio performances) also known as stream rate.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.