PLAN | Supply Chain Analytics

16

Vendor Managed Inventory

Supplier-managed replenishment collaboration

What Is It?

VMI is a supply chain initiative where the supplier manages inventory levels at the customer's premises.

  • Demand forecasting - Supplier predicts customer needs
  • Stock optimization - Automated optimal levels
  • Auto-replenishment - Supplier initiates orders
  • Data sharing - Real-time inventory visibility

CMI vs VMI

Customer Managed (CMI)

Customer monitors inventory and places orders when needed

Vendor Managed (VMI)

Vendor monitors inventory and delivers products proactively

Analytics Methods

Time-Series (ARIMA)

Predict B2B demand

Machine Learning

Complex B2C patterns

EOQ & ROP

Inventory optimization

Dynamic Programming

Sequential replenishment

Key Performance Indicators

Inventory Turns

Turnover frequency

Service Level

Demand met from stock

Fill Rate

First shipment fulfillment

Related Use Cases

Inventory Optimization Supplier Capacity Demand Forecasting
All PLAN Cases

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