Vendor Managed Inventory or VMI is a process in which the lender creates orders for its debtors based on the information on the needs it receives from the Debitor. The lender and the debtor are bound by an agreement that determines inventories, filling rates and costs. It appeared that a BMI agreement should be organized in part on the general and legal aspects of the agreement, while technical and relationship issues should be addressed in the annexes. This increases the flexibility of the agreement to the extent that, over time, the amendments only concern the annexes, which leave the main part of the agreement unchanged. The proposed agreement has a flexible structure and can be easily taken up by the staff concerned in order to properly define and implement BMI in several industrial sectors. Zammori, F., Braglia, M. and Frosolini, M. (2009), “A standard agreement for vendor managed inventory,” Strategic Outsourcing: An International Journal, Vol. doi.org/10.1108/17538290910973376 The lender verifies the information received by the lender and the search for a contract is based on the existing agreement between the lender and the debtor. Coming closer from a practical point of view, this document identifies the key issues that need to be addressed in the agreement in order to meet the needs of both parties and to ensure mutual benefits. Based on a relevant industrial application, the flow of information and technical details to be defined before the start of the operation are identified and discussed.
This data is used as key elements to define the basic framework of the agreement. Particular attention is paid to the “Technical Specifications” and “Service Level Agreement” sections. Data is generally updated weekly and transmitted through an EDI that predicts actual market trends. The data are based on actual quantities of items produced and sold. This information exchange agreement aims to maintain a continuous flow of necessary goods. The aim of this document is to define the standard structure of a VMI (Vendor Managed Inventory) agreement, which can be used as a guideline for the early definition of the agreement. As a symbiotic relationship, VMI makes it less likely that a company will unintentionally become out of a property`s warehouse and reduce stock in the supply chain. In addition, representatives of a store`s suppliers benefit the seller by ensuring that the product is properly displayed and that the staff of the subsidiary is familiar with the functions of the product line, helping to clean and organize the product lines for the shop. VMI can also reduce the size of the Bullwhip effect. This provision can improve supply chain performance, while reducing inventories and eliminating inventory. The second class is a multi-level VMI mathematics model, z.B. a single single-seller multi-retail VMI (SM-SV-MR) model.
 These studies cannot model the refuelling frequencies here. Because refuelling frequencies play an important role in integrated stock models to reduce the total cost of supply chains that, in many studies, are not modelled into mathematical problems.