Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. The owner of the Crafted Hand shop in her home town wants to add the bags to the items she sells on consignment in her store. Taylor would be responsible for stopping by and replenishing the inventory such that there are always ten bags on hand.
Which of the following is true?

Question

Quizplus · Accepted Answer

This is an example of vendor-managed inventory, as the owner of the Crafted Hand shop is essentially outsourcing the inventory management to Taylor. Taylor is responsible for ensuring that there are always ten bags on hand and replenishing the inventory as necessary.

Taylor Uses Old T-Shirts to Make Reusable Shopping or Grocery