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Accounting > Vendor Managed Inventory (Vmi)

The following information is about Vendor Managed Inventory (Vmi).

Vendor Managed Inventory (Vmi) Defined

is a process in which a supplier generates orders for its distributor based on demand information sent by the distributor. Vendor Managed Inventory was first applied to the grocery industrybetween companies like Procter & Gamble (supplier) and Wal-Mart (distributor). But increasinglyVendor Managed Inventory is providing the benefits of smoother demandincreased saleslower inventories and reduced costs to other industries.

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