International Research Journal of Management, IT & Social Sciences Available online at https://sloap.org/journals/index.php/irjmis/ Vol. 2 No. 9, September 2015, pages: 1~9 ISSN: 2395-7492 https://sloap.org/journals/index.php/irjmis/article/view/317 1 Implementation of Vendor Managed Inventory (VMI) in Managing Intra Ocular Lenses (IOL) in Eye Care Organization Nancy Sharma a Article history: Abstract Received: 12 May 2015 Accepted: 30 July 2015 Published: 31 September 2015 Nowadays healthcare has a completely changed scenario as compared with the early 90’s. As more and more profit-generating hospitals are coming in the industry, hospital, and health care is no longer remains a charitable or philanthropically act. So to remain in the market and compete within hospitals need to now focus on the different and innovative strategies in every aspect. Supply chain and operations are one of the important keys of any organization which directly impact business and revenue. Vendor Managed inventory is not a new concept but it is not efficiently utilized in service and healthcare industry as of now. Some retail and automobile industries have utilized the concept and also able to reduce the inventory cost with the manageable position of stock out and overstocking position. As the hospital’s key functioning is to deal with the life of patients on day to day so the position of material needs to be necessarily on right time and the right place. This paper is based on the insight of the application of vendor managed inventory in the management of inventory for the IOL (Intraocular lenses) that is used for the surgeries in the eye hospital. We will also study the questionnaire on the acceptability of the concept of vendor managed inventory in the hospital that will help to assess the acceptability of VMI in the hospital and healthcare industry. Also, a framework matrix is designed to understand the relation of VMI with the revenue earning and smoothening of operational efficiency. Keywords: Turnaround time; Order filling rate; Inventory management; Vendor managed inventory; Operational efficiency and effectiveness; 2395-7492© Copyright 2015. The Author. This is an open-access article under the CC BY-SA license (https://creativecommons.org/licenses/by-sa/4.0/) All rights reserved. Author correspondence: Nancy Sharma, Amity Bussiness School, Email address: nancy.sharma306@gmail.com 1. Introduction Healthcare industry is in a developing stage and it will evolve gradually. Hospitals are playing an important role nowadays to serve the society with the most advanced and equipped healthcare services. Supply chain process is not that much evolved in the hospital industry in India and treated as only much more as a store function.VMI (vendor managed inventory) is not a new concept but it is not utilized in hospitals as a competitive strength. VMI is a a Amity Bussiness School, India