Certified Healthcare Leader (CHL) Exam 2026 – 400 Free Practice Questions to Pass the Exam

Vendor-managed inventory (VMI) is a collaborative approach in which the vendor or supplier is responsible for managing and replenishing the inventory for a facility. This means that the vendor assesses the inventory levels and decides when and how much stock to deliver, streamlining the supply chain process. By outsourcing inventory management to the vendor, healthcare facilities can reduce the burden of tracking stock levels and ordering supplies, allowing them to focus more on patient care and other operational aspects.

In this system, the vendor uses real-time data from the facility to make informed decisions about inventory needs, which often leads to improved stock availability and reduced instances of overstock or stockouts. This practice benefits both parties: the facility experiences efficiency and lower administrative costs, while the vendor can optimize inventory flow and reduce expenses related to excess production.

The other options represent different inventory management practices but do not capture the collaborative essence of vendor-managed inventory. Self-management of inventory invites challenges in performance metrics and increases the risk of inventory shortages, while employee inventory tracking does not involve vendor participation. Reporting product sales pertains to sales forecasting and inventory turnover, not the direct management of inventory by the vendor.