By delaying the ownership transfer of goods, VMI fosters an increased replenishment frequency similar to what might be expected from a continuous replenishment program. Information sharing practices between supply chain members are critical for VMI development, as they tend to decrease the average stock level in the supply chain through better supplier visibility and reduce the number of stock out occurrences at the retail level, while providing demand
responsiveness. The corresponding theoretical proposition for VMI procurement can be described as: