VENDOR MANAGED INVENTORY WITH CONSIDERATION OF CONSIGNMENT

Abstract

            Holding vendor/manufacturer stock in the godown of the buyer is a modern business technique called as vendor/manufacturer-managed stock (VMI) with a stock contract which is consignment nature. The benefit to the consumer is taken into account here as is the detection and removal of faulty products from consignment stock. The manufacturer or vendor sends each manufactured group in a already determined number of groups of products the buyer's godown.. According to market demands, the buyer pulls out these items and inspects them for quality. The portion of storage costs which is not financial in nature, which is taken into account in this numerical model, has an impact on supply chain cost.

Key words: inventory, vendor,supply chain defective items