G.J Inc.,an electronic component manufacturer and supplier,has an inventory management system that stores purchase patterns and requirements of its customers.Through this system the firm decides on the amount of the product required by the buyers and automatically ships the supplies to the buyer based on a preexisting agreement.This type of inventory management system is called _____.

Question

Quizplus · Accepted Answer

The inventory management system described in the scenario is a vendor-managed inventory system. In this type of system, the supplier (vendor) manages the inventory of the buyer and decides when and how much to ship based on the buyer's needs and preexisting agreements.

GJ Inc,An Electronic Component Manufacturer and Supplier,has an Inventory Management System