A type of inventory where a customer actually allows the supplier to manage the inventory policy of an item or group of items for them.
A) Vendor-directed inventory
B) Subcontracted inventory
C) Remote inventory
D) Vendor-managed inventory
E) Outsourced inventory

Question

Quizplus · Accepted Answer

Vendor-managed inventory (VMI) is a type of inventory management where the supplier takes responsibility for managing the inventory levels of a product or group of products of the customer. The supplier has access to the customer's inventory data and makes decisions on when to deliver new products and how much to deliver based on the current inventory levels. This can help reduce inventory costs, improve product availability, and simplify supply chain management.

A Type of Inventory Where a Customer Actually Allows the Supplier