Thanks to the implementation load, VMI is made for large quantities. Our experience shows that VMI can contribute in particular to the improvement of the level of service and, in particular, to the reliable balancing of fluctuations in demand. VMI agreements typically achieve stable long-term service levels in the 99% range. For more information on sales inventory (VMI) on WIKA, please visit our website. In BMI practice, the place of storage depends on the agreement between the lender and the debtor. The first option is that the stocks are both at the customer`s and at the supplier`s. For the supplier, this serves as a protection against short delivery cycles or uns synchronized production cycles. [14] On the other hand, this provision may also result in higher storage costs, as the material must be stored, tracked and processed, and may be aged. [15] This provision can improve supply chain performance, while reducing inventories and eliminating inventories.

Consumers benefit from specialized staff who are often in contact with manufacturers` representatives (suppliers) when parts or services are needed. Store employees are familiar with most of the product lines offered by the full range of suppliers. They can help consumers choose from competing products for items that are best for them, and offer service support from the store. The first class of VMI, bi-level VMI-mathematics, includes two levels (or rungs) in a supply chain: suppliers and distributors. There are three types of VMI mathematics models that have been developed from this class, which are a single VMI supplier model with a single retailer,[7] a VMI model with multiple vendors,[8] and a VMI model with multiple vendors. [9] This class has evolved considerably. For example, the VMI model has been extended with a single distributor for several products[10] the consignment stock (CS), [11] and the discount. [12] These items relate to the type of request information provided by customers to help suppliers control their inventory. Many types of needs information are shared under the VMI program. Information on the needs that are visible to the supplier are sales data, inventory collection, production plan, stock, goods in transit, order delivery, orders and return. The argument is that data and inventory exchange can improve the supplier`s production planning, make it more stable and visibility.

It also provides a better understanding of seasonal changes and helps identify critical periods. The supplier can therefore use this information, adapt its production to customer demands and react more quickly. With the increasing visibility of the information, the supplier has a longer time frame for replenishment [20] The supplier also has real-time visibility that allows it to have a hand in stock for the planning of buyer demand, allowing the stock to be projected according to future demand in order to target (minimize or maximize) its inventory. [21] This stability and coordination reduces the Bullwhip effect[22] because the manufacturer has clearer supply chain visibility and an overview of incoming demand [23]. In addition, there is no need for order and vote corrections, which further reduces purchase costs. Cost savings are also reflected in reducing storage costs.