What is Vendor Managed ...

[kodithompson]

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]

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

[kodithompson]

TYSM

[juliaf]

Thanks for the timely response, appreciate it