Vol. 3, Issue 11, Part E (2017)

Abstract
Vendor Managed Inventory was first tested on a large scale by Procter & Gamble and retail giant Walmart in the 1980s. Walmart has been able to reap the larger benefits of VMI. The implementation of VMI can potentially provide benefits to both the vendor and the customer when properly applied. It all comes down to thinking through the process, making sure the benefits are real, and making sure there are enough controls in place to protect both parties. As an inventory management technique here a supplier of goods, usually the manufacturer, is responsible for optimizing the inventory held by a distributor. The present study is a conceptual study of the Vendor Managed Inventory in the organisations.