Question

Which process where the vendors create orders for their customer based on demand information received from customer?

Answer 1

Vendor Managed Inventory (VMI) is a streamlined approach to inventory management and order fulfillment. VMI involves collaboration between suppliers and their customers (e.g., distributor, retailer, OEM, or product end user) which changes the traditional ordering process.

The goal of VMI is to align business objectives and streamline supply chain operations for both suppliers and their customers. The business value is a direct result of increased information flow: