Vendor-managed inventory (VMI) is a business model in which RILCO agrees to consign specific RILCO products at our customer’s long term storeroom.  RILCO will own this inventory until it is used (or is in the process of being used) by our customer’s location.  “In the process of being used” is defined as once a tote’s discharge, a drum’s cap, a keg’s cap or a case of product has been opened then that particular container is considered consumed.  Once a product’s container is opened or a product(s) is used out of an on-site bulk tank, it is then when it is can be invoiced for proper payment by RILCO to the customer.  The consignment inventory re-stocking quantities should be ordered under the RILCO/Customer agreements defined in the practices outlined in a good just-in-time (JIT) inventory program.