A Company Has Recently Implemented a Vendor-Managed Inventory (VMI) Program

question 221

Multiple Choice

A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?

• A) Tighten the quality tolerances
• B) Implement a supplier certification program
• C) Implement quality inspection at the receiving dock
• D) Charge back to the supplier the rework and scrap costs

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Definitions:

Strategic Planning

The process of defining a business's strategy, directions, and making decisions on allocating its resources to pursue this strategy.

SBUs

Strategic Business Units are individual units within a larger company, focusing on specific markets or products and having their own mission, objectives, and competitors.

Corporate Level

Pertains to high-level strategic decision-making that concerns the entire organization, involving actions such as mergers, acquisitions, and overall growth strategies.

Core Purpose

The fundamental reason a company exists, beyond just making money, which guides its business decisions and shapes its culture.