【正文】 ng some of the inventory functions as required. The level of efficiency of the inventory managed can be measured to a specific risk level, changing requirements or changes in the environment.JustInTime (JIT)Justintime (JIT) inventory system is a concept developed by the Japanese, wherein, the suppliers deliver the materials to the factory JIT for their processing, eliminating the need for storage and retrieval. The rate of output and the rate of supply of inputs are synchronized, to manage a zero inventory.The main benefits of JIT are: set up times are significantly reduced in the factory, the flow of goods from warehouse to shelves improves, employees who possess multiple skills are utilized more efficiently, better consistency of scheduling and consistency of employee work hours, increased emphasis on supplier relationships and continuous round the clock supplies keeping workers productive and businesses focused on turnover.And though a JIT system might even be a necessity, given the inventory demands of certain business types, its many advantages are realized only when some significant risks like delays in movement of goods over long distances are mitigated.VendorManaged Inventory (VMI)VendorManaged Inventory (VMI) is a planning and management system in which the vendor is responsible for maintaining the customer’s inventory levels. VMI is defined as a process or mechanism where the supplier creates the purchase orders based on the demand information. VMI is a bination of emerce, software and people. It has resulted in the dramatic reduction of inventory across the supply chain. VMI is categorized in the real world as collaboration, automation and cost transference.The main objectives of VMI are better, cheaper and faster transactions. In order to establish the VMI process,management mitment,data synchronization,setting up agreements,data exchange, ordering, invoice matching and measurement have to be benefits of VMI to an organization are reduction in inventory besides reduction of stockouts and increase in customer satisfaction. Accurate information which is required for optimizing the supply chain is facilitated by efficient transfer of information. The concept of VMI would be successful only when there is trust between the organization and its suppliers as all the demand information is available to the suppliers which can be revealed to the petitors. VMI optimizes inventory in supply chain and reduces stockouts by proper planning and centralized forecasting.Consignment Model Consignment inventory model is an extension of VMI where the vendor places inventory at the customer’s location while retaining ownership of the consignment inventory model works best in the case of new and unproven products where there is a high degree of demand uncertainty, highly expensive products and service parts for critical equipment. The types of consignment inventory ownership transfer models are: pay as sold during a predefined period, ownership changes after a predefined period, and order to order consignment. The issues that the VMI and consignment inventory model encounter are cost of developing VMI system, invoicing problems, cash flow problems, Electronic Data Interchange (EDI) problems and obsolete stock.Enabling Practices The decision makers have to make prudent decisions on future course of action of a project relating to the following variables: Forecasting and Inventory Management,Inventory Management practices,Inventory Planning,Optimal purchase, Multichannel Inventory, Moving towards zero inventory. To improve inventory management for better forecasting, the 14 best practices that will most likely benefit business the most are: ?Synchronize promotions。? Domestic vs. off shore。? New supplier39。 ?Revamp the organizational structure。 ?Select the right systems。 ?Plan by assortment。 and ?Optimize SKUs.This will leverage the retailer’s ability to buy larger quantities across all channels while buying only what is required for a specified period in order to manage risk in a better way. In most multichannel panies, inventory is the largest asset on the balance sheet, which means that their profitability will be determined to a large degree by the way they plan, forecast, and manage inventory (Curt Barry, 2007). They can follow some steps like creating a strategy, integrating planning and forecasting, equipping with the bestlaid plans and building strong vendor relationships and effective liquidation.Moving Towards Zero InventoryAt the fore is the development and widespread adoption of nimble, sophisticated software systems such as Manufacturing Resource Planning (MRP II), Enterprise Resource Planning (ERP), and Advanced Planning and Scheduling (APS) systems, as well as dedicated supply chain management software systems. These systems offer manufacturers greater functionality. To implement ‘Zero Stock’ system, panies need to have a good information system to handle customer orders, subcontractor orders, product inventory and all issues related to production. If the pany has no IT infrastructure, it will need to build it from the scratch.A good information system can help managers to get accurate data and make strategic decisions. IT inf