Praxair Limited is a supplier of synthetic graphite to a number of electrode manufacturers in the United States. Its customers have shifted their ordering responsibilities to Praxair and the company regularly monitors its customers' inventory levels and has taken responsibility for replenishing the supplies automatically through continuous replenishment programs. Which of the following systems do Praxair and its customers follow with respect to order-routine specification?
A) Supplier Added Value Effort ($AVE)
B) Vendor Managed Inventory (VMI)
C) Direct Concentrated Buying (DCB)
D) Supplier Performance Management (SPM)
E) Product Value Analysis (PVA)

Question

Quizplus · Accepted Answer

Praxair and its customers follow the Vendor Managed Inventory (VMI) system, in which the supplier (Praxair) takes responsibility for monitoring and replenishing the customer's inventory levels automatically.

Praxair Limited Is a Supplier of Synthetic Graphite to a Number