When walmart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits those data to the company that makes the diapers. when inventory gets too low, the diaper company ships more diapers in that walmart store. this process is called:?

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08-12-2017
Business

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When walmart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits those data to the company that makes the diapers. when inventory gets too low, the diaper company ships more diapers in that walmart store. this process is called:?

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meerkat18 meerkat18 · Answer 1 · 2017-12-19T05:14:06+01:00

This process is called vendor-managed inventory. Vendor-managed inventory or VMI is a family of business models. In this process, the buyer of a product provides a specific information to a vendor of the product. The vendor takes full responsibility for the maintenance of an agreed inventory of the material which is usually at the buyer's store location. Then a third-party logistic provider can be involved to confirm that the buyer has the necessary level of inventory by adjusting the demand and the supply gaps.