When Best Buy vendors ship merchandise directly to stores instead of distribution centers,the company is utilizing _____.
A)perpetual inventory
B)inventory control
C)production control
D)vendor-managed inventory

Question

Quizplus · Accepted Answer

Vendor-managed inventory (VMI) is a practice where a supplier, in this case, Best Buy's vendors, takes responsibility for managing the inventory of their products in a retailer's store. This means that the vendor would be responsible for optimizing the inventory levels, replenishing stock, and ensuring that the products are always available to customers. Best Buy benefits from lower carrying costs and increased product availability, while the vendors get more control over their product distribution.

When Best Buy Vendors Ship Merchandise Directly to Stores Instead