The practice of buyers allowing suppliers to observe their demand,create a forecast,and determine their resupply schedules in the hopes of reducing inventories is called:
A) Order Batching
B) Forward Buying
C) The Legacy System
D) VMI

Question

Quizplus · Accepted Answer

The practice described in the question is known as Vendor Managed Inventory (VMI). In VMI, the supplier takes responsibility for managing and replenishing inventory levels for the buyer based on observed demand and agreed-upon resupply schedules. This can help reduce the buyer's inventory holding costs and improve supply chain efficiency. Options A, B, and C are not relevant to the described practice.

The Practice of Buyers Allowing Suppliers to Observe Their Demand,create