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1) Vendor managed inventory. Logistics buzzword for a system by which inventory costs are (hopefully) reduced.


Vendor managed inventory (VMI)

1) (1) System whereby a supplier is responsible for maintaining pre-determined inventory levels. (2) An element of inventory stocked by one organization but where the forecast demand, and required stock levels to meet that demand, are calculated by the manufacturer or distributor of the stock items concerned. (Source: ILT Supply-Chain Inventory Management SIG)

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.269 (288 p.)


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