A review of Vendor Managed Inventory (VMI): from concept to processes

Guillaume Marquès · Caroline Thierry · Jacques Lamothe · Didier Gourc

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Supply Chain and Inventory Management Quality and Supply Management Logistics and Transportation Systems

Abstract

In the modern supplier–customer relationship, Vendor Managed Inventory (VMI) is used to monitor the customer's inventory replenishment. Despite the large amount of literature on the subject, it is difficult to clearly define VMI and the main associated processes. Beyond the short-term pull system inventory replenishment often studied in academic works, partners have to share their vision of the demand, their requirements and their constraints in order to fix shared objectives for the medium/long-term. In other words, the integration of VMI implies consequences for the collaborative process that links each partner's different planning processes. In this article we propose a literature review of VMI. Based on the conceptual elements extracted from this analysis, we suggest a VMI macro-process that summarises both operational and collaborative elements of VMI.

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References

2006Perspectives in supply chain risk management 2018Journal of Business Logistics 2000The Value of Information Sharing in a Two-Level Supply Chain 2005Global supply chain design: A literature review and critique 2005Supply Chain Collaboration:2004The Allocation of Inventory Risk in a Supply Chain: Push, Pull, and Advance-Purchase Discount Contracts 2000Stock Replenishment and Shipment Scheduling for Vendor-Managed Inventory Systems 2003The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains

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