Vendor-managed inventory can improve supply chain efficiency by:
A) using EDI to notify the manufacturer that supplies are low and should be replenished.
B) reducing inventory costs to both the vendor and retailer by reducing stock-outs and excess inventories.
C) allowing manufacturers to sell on consignment,which shifts the cost of maintaining inventory from the retailer to the manufacturer.
D) shifting the time of sales personnel from writing orders to selling new items and developing relationships.
E) All of these.

Question

Quizplus · Accepted Answer

Vendor-managed inventory (VMI) incorporates various strategies, including the use of electronic data interchange (EDI) to notify manufacturers when stock levels are low, reducing inventory costs by minimizing stockouts and excess stock, allowing manufacturers to sell on consignment, which shifts the responsibility of inventory management from the retailer to the manufacturer, and freeing up the time of sales representatives to concentrate on selling new products and establishing relationships. Overall, these advantages aid in enhancing supply chain efficiency and making it more effective.

Vendor-Managed Inventory Can Improve Supply Chain Efficiency By