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Business: Case Study Name: Grade Course: Tutor’s Name: (6, April, 2011) Discuss the decision criteria that should be considered when assessing the pros and cons of entering into a Vendor Managed Inventory arrangement with major suppliers? There are various ways in which organizations and companies out in the market places are supposed to conduct their objectives and thus enhancing the organizations to excel in the market today. Some of those decisions that are supposed to be conducted by an organization include the delivery of good and services from the company’s supplier to its customers; which in this case the manufacturer of the goods and services is the supplier of the goods and services. On the other hand the consumer is the company that will be receiving the goods and services from the supplier thus providing a clear distinction between the supplier and the customer in the trade. The use of the Vendor Managed Inventory System (VMI) is proving to be of great benefit to these companies as opposed to the initial types of delivery agreement that existed before. In this system the supplier of the commodities will take full responsibility of the products that he intends to supply to his consumers (Saxena, 2009). This is slightly different from the previous method where the supplier of the product is responsible to the products of the consumers till the product is delivered to the consumer. While in the Vendor Managed Inventory System (VMI) the supplier is responsible for the product until when the product is consumed; thus when the product is damaged it is still the supplier responsibility to compensate the products until the product is consumed by the customer. Does a Vendor Managed Inventory system support a "lean" approach to supply chain management? Explain! The Vendor Managed Inventory System (VMI) is seen as one type of agreement provides a fair ground in the supply chain management and thus support its introduction and implementation in the supply chain management. The policies that govern the Vendor Managed Inventory System (VMI) are able to give the buyer of the products the guarantee that they will receive the expected quality of the products that they have purchased from their suppliers (Wheatley, 2008). This will reduce the cases where suppliers mishandled their buyers products this is because they are guaranteed that they will not be liable to any fines as soon as they deliver the products to their suppliers. The introduction of the Vendor Managed Inventory System (VMI) will eventually result to the suppliers being more cautious when handling or dealing with the products of there buyers. This is because they will be monitored very exclusively by there buyers and they will also be responsible for these products even after the delivery of the products. The products will only be relived off the burden of the product they supplied to their buyers only after the product is consumed by their buyers (Brand, 2009). Has globalization of supply chains encouraged or discouraged Vendor Managed Inventories? The introduction of globalization has resulted to the extended use of the Vendor ...