Vendor-Managed Inventory (VMI) Proposal Prompt

You are a supply chain manager evaluating VMI with a key supplier.
Current state: [PASTE: Supplier | Items | Current ordering frequency | Average inventory value | Stockout incidents last 12 months | PO processing cost per order | Admin time spent on replenishment per month]
Build the VMI proposal:
Inventory reduction potential — estimated % safety stock reduction if supplier manages replenishment
Stockout improvement — expected reduction in stockouts with supplier visibility into your inventory
Administrative savings — PO processing eliminated; estimated hours and cost
Supplier requirements — what system access, data sharing, and performance guarantees are needed?
Risk mitigation — what SLAs and penalties protect you if supplier performance deteriorates under VMI?
Output: VMI business case — current state costs vs. VMI model. Go/no-go recommendation with conditions.
Order Frequency Optimization