Identification of Most Important and Easy to Implement Key Components of Vendor Managed Inventory (VMI) In manufacturing Industry

Abstract

Vendor Managed Inventory is a technique which attempts to optimize the supply-chain by simultaneously managing inventory and routing. In Vendor Managed Inventory system, the supplier must have all the information about customer requirement so that he can take decision about level of replenishment and timing. All these things will ensure that customer do not go stock out.

In this literature we find some key components related to VMI which are vital to both customer and vendor in manufacturing industries. Components have been summarized, evaluated and schemed on a matrix plot to find out the less difficult and most important VMI components in manufacturing industries.