Abstract: A consignor and a retailer develop a consignment agreement for a consigned product. An inventory order is generated for stocking levels of the consigned product in a retailer's distribution system. An inventory quantity of the consigned product based on the inventory order is shipped out to the retailer's distribution system. A virtual inventory is created in a consignor's computer system to match the inventory quantity shipped to the retailer's distribution system and also that identifies the inventory location. A consignor's computer system receives sales data for the consigned product. The retailer's distribution system is replenished based on the sales data. The virtual inventory in the consignor's computer system is decremented based on the sales data received.