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

question 78

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 the ordering to have the product on the selling floor.
• E) It is an added cost with little benefit for the retailer to share selling information with their vendors.

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Definitions:

Sublimation

A chemical process where a substance transitions directly from a solid to a gas phase, skipping the liquid phase.

Instinctive Drives

Innate impulses that motivate individuals to perform certain actions essential for survival, such as eating and reproducing.

Socially Unacceptable

Behaviors or actions that are generally considered offensive, inappropriate, or not in line with societal norms and values.

Acceptance

Agreeing verbally or in writing to the terms of a contract, which is one of the requirements of an enforceable contract.