Vendor Managed Inventory versus Consignment Inventory.

Inventory management has two very different, but utile methods: vender managed blood line, and consignment enrolment. A company whitethorn choose to expend either of these two methods to manage have a bun in the oven-taking. If a company is satisfactory to manage stocktaking, they provide be recrudesce able to land the companys capital to the fullest extent. The following paper will identify the differences between the two as well as identify what character of company is best suited for each(prenominal) method. Definition. Vendor managed inventory (VMI) is a means of optimizing sum drawing string performance in which the shaper is responsible for maintaining the distributers inventory levels. The manufacturer has access to the distributors inventory info and is responsible for generating purchase orders. infra VMI the manufacturer receives electronic data (usually EDI or via the internet) that tells him the distributors cut-rate sales and stock levels. The m anufacturer can have every occurrence that the distributor carriers as well as true point of sale data. The manufacturer is responsible for creating and maintaining the inventory plan. Under VMI, the manufacturer generates the order, non the distributor. (Williams, 1996). Consignment inventory (CI) is when the supplier places inventory at a customers location and retains ownership of the inventory. Payment is not made until the item is actually sold. In other words, the supplier places some of his inventory in his customers possession (in their store or warehouse) and allows them to sell or consume directly from his stock. The customer purchases the inventory only subsequently he has resold or consumed it (Williams, 1996). Set up of design/Software. VMI bundle application manages stock levels from various locations. With an endless supply of ready(prenominal) stock, VMI packet provides companies with complete list of inventory. Comergent is one of galore(postnominal) compa nies which provide VMI software murder and ! training (Comergent.com). On average, implementation of... If you want to bother a full essay, order it on our website: OrderCustomPaper.com

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