What role does a supplier play in a Vendor Managed Inventory (VMI) system?

In a Vendor Managed Inventory (VMI) system, the primary role of a supplier is to maintain inventory levels. This approach shifts the responsibility of inventory management from the retailer to the supplier. The supplier gains visibility into inventory levels and sales data, allowing them to make informed decisions about restocking products.

By managing the inventory, the supplier can ensure that stock levels are optimized based on actual demand, reducing stockouts and excess inventory. This collaborative effort helps improve supply chain efficiency and can lead to lower overall costs for both the supplier and the retailer. The focus on maintaining inventory levels highlights the supplier's role in facilitating a smooth flow of goods and ensuring that the retailer has the necessary products available for consumers.

Other options like advertising, billing, and market research do not directly relate to the core function of VMI, which is centered around the supplier's responsibility for inventory oversight and replenishment.