Which of the Following Is a Disadvantage of Vendor-Managed Inventory

question 9

Multiple Choice

Which of the following is a disadvantage of vendor-managed inventory (VMI)

• A) It often results in higher customer inventories than necessary.
• B) It does not allow vendors to view inventory needs from the customer's perspective.
• C) It prohibits the use of customer information, which leads to poor control of inventory and capacity.
• D) It prevents vendors from making production decisions using downstream customer demand data.

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Definitions:

Absolute Value Inequality

An inequality that involves the absolute value of a variable expression, requiring consideration of both positive and negative scenarios.

Interval

A range of values or a segment of a number line, often specified by its endpoints.

Manufacturing Process

A manufacturing process is the series of steps through which raw materials are transformed into a final product, involving various techniques and machinery.

Time Study

A work measurement technique for recording the times of performing a certain specific task to establish the standard time for an activity.