Author Question: Traditionally, companies are organized around five distinct functional areas. Which of the following ... (Read 95 times)

mckennatimberlake · **on:** Jul 7, 2018

Traditionally, companies are organized around five distinct functional areas. Which of the following is one of them?

A) supply chain management
B) risk management
C) technology management
D) communication management
E) systems management

Question 2

Compare and contrast vendor-managed inventory (VMI) model and traditional inventory model. List the benefits of the VMI model.

What will be an ideal response?

tashiedavis420 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

A

Answer to Question 2

Vendor-managed inventory (VMI) is a business model in which the suppliers to a manufacturer manage the manufacturer's inventory levels based on pre-established service levels. To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data. Under a traditional inventory model, the manufacturer or retailer would manage these inventories themselves, sending out requests for additional items as needed. In contrast, under a VMI model, the manufacturer or retailer shares real-time sales data with the suppliers. The suppliers maintain inventory levels based on pre-established agreements. Such arrangements can help optimize the manufacturer's inventory, both saving costs and minimizing stockout situations (thus enhancing customer satisfaction); the supplier, in turn, benefits from the intense data sharing, which helps produce more accurate forecasts, reduces ordering errors, and helps prioritize the shipment of goods.