What type of inventory control method can reduce the burden on retailers?

Vendor Managed Inventory (VMI) is designed to alleviate the burden on retailers by allowing suppliers to take responsibility for managing inventory levels. In this model, the supplier monitors the inventory at the retailer’s location and determines the optimal order quantities and timing based on pre-established criteria, such as sales patterns and inventory turnover rates.

This method enhances efficiency by streamlining the restocking process, reducing the retailer's need for extensive inventory management labor. Retailers benefit from lowered carrying costs and more accurate stock levels, as suppliers are typically more attuned to demand fluctuations and can respond more swiftly to inventory needs.

Additionally, VMI fosters a stronger collaboration between suppliers and retailers, which can lead to better overall supply chain performance. By enabling vendors to manage their products more effectively, retailers can focus on core business operations rather than being bogged down by inventory challenges.