Author Question: What is Vendor Managed Inventory?[br][br][b][color=#151B54]Question 2[/color][/b][br][br]A survey ... (Read 167 times)

kodithompson · **on:** Jun 28, 2018

What is Vendor Managed Inventory?

Question 2

A survey asks the following two questions:

Q1 At 25.00, I definitely would not buy 1 2 3 4 5 6 7 definitely would buy
Q2 At 35.00, I definitely would not buy 1 2 3 4 5 6 7 definitely would buy

There is a segment of people who are not really interested in the product regardless of the price. What are their answers most likely to be?
a. Q1 = 2 or 3, and Q2 = 1 or 2
b. Q1 = 6 or 7, and Q2 = 5 or 6
c. Q1 = 4 or 5, and Q2 = 3 or 4
d. Q1 = 1 or 2, and Q2 = 2 or 3

jesse.fleming · **Reply #1 on:** Jun 28, 2018

Answer to Question 1

Essentially, vendor-managed inventory (VMI) usually means that the manufacturer will manage the inventory of its products (and possibly related products) at the retailer's warehouse(s) and reorder as appropriate for customer fulfillment. The manufacturer may also have a representative at the designated retail warehouse locations to assure accurate and timely delivery. The retailer should experience lower costs associated with inbound logistics, and the manufacturer should be able to offset its additional cost with increased sales (fewer stockouts, more complete orders, etc.), because of the more accurate and timely information of product orders at the store level.

Answer to Question 2

a