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:

Downsizing

The reduction of an organization's workforce to improve its efficiency or reduce costs.

Workforce Reduction Programs

Initiatives taken by organizations to decrease the number of employees through methods such as layoffs, buyouts, or retirements to reduce costs and improve efficiency.

Cutting Costs

The process of reducing expenses in order to improve a company's financial performance or maintain its competitiveness.

Offshoring

The practice of relocating business processes or manufacturing to another country to reduce costs or improve efficiency.