When Using a Vendor-Managed Inventory System to Enhance the Features

question 117

Multiple Choice

When using a vendor-managed inventory system to enhance the features of supply chain management,a challenging issue is:

• A)the sharing of accurate,timely,and relevant information about sales forecasts.
• B)problems of communication and trust.
• C)potentially incompatible information systems.
• D)All of the above.

---

Definitions:

Opportunity Rate

The return a company foregoes by investing capital in one project over a potentially more profitable alternative.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, involving the direct sending of payments to a location accessible by the bank, which then deposits the funds into the company's account.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Money Market Securities

Short-term debt instruments, commonly including treasury bills, commercial paper, and certificates of deposit, known for their liquidity and low-risk profile.