An inventory-management system whereby the supplier determines the product amount and assortment a customer,such as a retailer,needs and automatically delivers the appropriate items is known as a(n):

Question

Quizplus · Accepted Answer

Vendor-managed inventory (VMI) is an inventory-management system where the supplier (vendor) is responsible for monitoring and replenishing a customer's inventory automatically. The vendor takes charge of the supply chain and provides the customer with an agreed-upon level of inventory at an agreed-upon time. This system helps to improve visibility and coordination between the supplier and customer, leading to reduced lead times, inventory carrying costs, stock-outs, and overstocking. Option A is not the best choice because supplier-managed inventory is not a commonly used term. Option B is not the best choice because supply chain inventory can refer to several inventory models. Option D is not the best choice because JIT is a production strategy where inventory is produced and delivered exactly at the right time to meet customer demand and reduce carrying costs.

An Inventory-Management System Whereby the Supplier Determines the Product Amount