A Vendor-Managed Inventory System Refers to an

question 339

Multiple Choice

A vendor-managed inventory system refers to an

• A)inventory supply system that operates with very low inventories and requires fast on-time delivery.
• B)inventory management system whereby the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items.
• C)inventory management system that is designed to reduce the retailer's lead time for receiving merchandise,which then lowers its inventory investment,improves customer service levels,and reduces logistic expenses.
• D)inventory supply system that relies on the "judgment" of individual warehouse managers based on daily reports from its retailer customers.
• E)inventory system that guarantees delivery within 48 hours,granting price reductions of 1 percent per hour if a shipment is delayed.