This course explores how effective management of inventory is a key challenge
in most supply chains.
Hold too much and you incur significant inventory carrying costs, run the risk
of product obsolescence, and waste capacity. Hold too little and you may not
be able to satisfy customer demand. Finding the right balance between too much
and too little inventory requires effective forecasting, visibility, and
Vendor managed inventory (VMI) is a proven model for controlling the level of
inventory in the supply chain. Instead of each organization developing
independent plans and managing inventory independently, a vendor takes full
responsibility for managing customer inventory levels. The supplier monitors
the use or sale of its products at the customer’s locations and decides when
to initiate the resupply process and generate customer purchase orders.
This course focuses on the fundamentals of VMI, covering key issues and
challenges, implementation requirements, and the expected outcome of VMI
initiatives. Case studies and brief activities will be used to demonstrate key
This course is appropriate for individuals with limited exposure to the
management of inventory in the supply chain, the use of VMI, and supply chain
collaboration. The course is led by Dr. Brian Gibson, Associate Professor of
Logistics at Auburn University. Dr. Gibson has studied inventory issues
throughout industry and has an academic career that spans nearly 20 years.
After completing this course, you should be able to:
Discuss the role and applicability of a VMI strategy to various supply chain types.
Understand the value proposition of VMI (the cost and service implications of working with VMI).
The following topics are included in this course:
VMI definitions, purposes, processes, and strategies