Because of the Nature of Vendor-Managed Inventory

question 68

Multiple Choice

Because of the nature of vendor-managed inventory:

• A)the flow of consumer purchases determines replenishment
• B)DCs need to run as deliveries arrive after hours and on holidays
• C)there are many delays in replenishment as it's not a collaborative approach
• D)third party logistic companies have become necessary
• E)EDI is now obsolete

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Definitions:

Adverse Selection

A situation in markets where buyers and sellers have access to different information, leading to transactions where one party may be at a disadvantage, often discussed in the context of insurance and used cars.

Individual Mandate

A requirement that individuals purchase health insurance or pay a penalty, aimed at ensuring universal coverage in health care systems.

Health Insurance Market

The marketplace where individuals, families, and employers purchase health insurance coverage.

Long-term Care Insurance

Insurance coverage designed to cover the costs of long-term care services, including both medical and non-medical needs for people with a chronic illness or disability.