What does vendor-managed inventory (VMI) primarily help achieve?

Vendor-managed inventory (VMI) primarily helps achieve improved product availability by allowing suppliers to monitor inventory levels and manage stock directly at the buyer's location. This system enables suppliers to understand demand fluctuations better and restock items as needed, ensuring that products are available when customers require them.

By transferring the responsibility of inventory management to the vendor, VMI optimizes stock levels and minimizes stockouts, resulting in increased service levels and efficiency in the supply chain. This proactive management contributes to higher customer satisfaction and can lead to a more collaborative and trustworthy relationship between the buyer and supplier.

In contrast, the other options do not align with the primary goals of VMI. For example, increased buyer inventory levels could lead to excess stock and higher holding costs, which VMI seeks to avoid. Additionally, while VMI does alter the dynamics of supplier responsibility by enabling them to manage inventory, it does not reduce their responsibilities; rather, it shifts those responsibilities towards active inventory control. Lastly, higher carriage costs are typically seen as a downside of inefficient supply chain practices, whereas VMI intends to streamline operations and reduce such costs.