TAM is Item Categories for Configurable Materials. It works at component level, whereas, TAC Item Categories for Configurable Materials at Material level.
It is more to do with Vendor-Managed Inventory. Here vendor creates orders for their customers based on demand information that they receive from the customer. The vendor and customer are bound by an agreement which determines inventory levels, fill rates and costs. This arrangement can improve supply chain performance but reducing inventories and eliminating stock-out situations.
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