What is the expected outcome when suppliers control inventory under a VMI system?

In a Vendor Managed Inventory (VMI) system, the responsibility for managing inventory levels is transferred to the supplier rather than the buyer. The expected outcome of this approach is an improvement in inventory accuracy and availability. When suppliers take control of inventory, they can more effectively monitor stock levels, anticipate needs based on sales data, and adjust replenishment accordingly, leading to a more accurate understanding of what products are available and what levels are required.

This proactive management by suppliers typically results in fewer stockouts and overstock situations, as they can act quickly to refill inventory based on real-time information. Additionally, the collaboration between suppliers and buyers fosters better communication regarding inventory needs and forecasts. As a result, the products are more readily available to meet consumer demand, enhancing overall supply chain efficiency.

In contrast, the other options suggest negative outcomes that would not align with the primary goals and benefits of a VMI system.