Which of the Following Describes the Limitations of Vendor-Managed Inventory

question 35

Multiple Choice

Which of the following describes the limitations of vendor-managed inventory that retailers may encounter?

• A) Since the vendor owns the merchandise until it is sold by the retailer, at which time the retailer pays for the merchandise, a retailer bears a financial risk.
• B) Retail buyers and planners need to monitor inventory levels.
• C) When the vendor coordinates the supply chain for its specific products, it does not know what other actions the retailer is taking that might affect the sales of its products in the future.
• D) It takes longer for a product to go from design to ordering the product to having the product on the selling floor.
• E) It is an added cost with little benefit for the retailer.

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