Question: 1 1 . VMI ( Vendor Managed Inventory ) is a method in which a vendor, i . e . a material supplier, holds

11. VMI (Vendor Managed Inventory)" is a method in which a vendor, i.e. a material supplier, holds and manages materials and parts of their customers. VMI between Procter & Gamble, Co and Wal-Mart Stores, Inc. is a famous example of a partnership transaction between a diaper manufacturer and their retailer.
From our lecture notes, how does VMI improve supply chain coordination? Select one:
a) The supplier treats the retailer with priority compared to all other retailers it serves.
b) The supplier uses POS data in order to replenish immediately every time the retailer sells the product.
c) The supplier determines inventory levels and inventory replenishment policies at the retailer in order to optimize production/shipments.
d) The retailer does not share forecast data with the supplier in order not to impact the production plans.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!