From the course: Supply Chain Foundations
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Vendor managed inventory
From the course: Supply Chain Foundations
Vendor managed inventory
- Full shelves at your favorite store. How do they get that way? Actually, how do they stay that way? Well, often it's thanks to an inventory program companies call VMI, vendor-managed inventory. But before we get into VMI, let's discuss life before VMI. Before VMI, your grocery store manager would have to track inventory levels for every item in the store. Do we need more milk, gallons, half gallons, pints? Should we reorder some of those, all of those or do we have enough to get through the week? If we place the orders, when those orders arrive, grocery store employees put them on the shelf, and those same employees will remove expired product. The grocery store monitors everything, orders everything and does all the work to get the item on the shelf. That's a lot of work and lots of decisions and they need to do it for every single item in the store. It's work that never ends. It can become exhausting, which brings…
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