When Wal-Mart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits that data to the company that makes the diapers. When it is necessary, the diaper company restocks the diapers in that Wal-Mart store. This process is called:
A) supply chain management
B) demand chain management
C) vendor-managed inventory
D) enterprise resource planning inventory
E) just-in-time inventory

Question

Quizplus · Accepted Answer

This process is an example of vendor-managed inventory (VMI) where the supplier (diaper company) takes responsibility for managing the inventory levels of their product at the retailer's (Wal-Mart) locations.

When Wal-Mart Sells a Package of Diapers, the Company Captures