A Review on Theoretical Development of Vendor-Managed Inventory in Supply Chain

Abstract

Vendor-managed Inventory (VMI) is a new inventory operation pattern in the supply chain environment, breaking the traditional independent inventory management pattern. It is a kind of cooperative strategies that improving continuously inventory management, which aims at obtaining the lowest cost for both users and suppliers, manages inventory by suppliers under a common agreement, and continuously supervises the implementation of the agreement and amends the content of the agreement. This paper discusses the existing literature of VMI, and reviews the research of VMI from its connotation, theoretical basis and four stages of development, points out the defects and deficiencies, and puts forward suggestions for further research direction.