A standard form of vendor managed inventory agreement (VMI) (or supplier managed inventory agreement) to streamline inventory management. The vendor replenishes its customer's stock levels based on data delivered by electronic data interchange (EDI) or other means instead of responding to customer purchase orders. This Standard Document has been prepared as an adjunct to a supply agreement. It incorporates an optional consignment provision that requires the vendor to deliver goods to the customer's warehouse without receiving payment until after the goods are used or sold. This Standard Document has integrated notes with important explanations and drafting tips.