Which of the following describes the limitations of vendor-managed inventory that retailers may encounter?
A) Since the vendor owns the merchandise until it is sold by the retailer, at which time the retailer pays for the merchandise, a retailer bears a financial risk.
B) It takes longer for a product to go from design to the ordering to have the product on the selling floor.
C) When the vendor coordinates the supply chain for its specific products, it does not know what other actions the retailer is taking that might affect the sales of its products in the future.
D) Retail buyers and planners need to monitor inventory levels.
E) It is an added cost with little benefit for the retailer to share selling information with their vendors.

Question

Quizplus · Accepted Answer

Vendor-managed inventory can lead to a lack of coordination between the vendor and retailer regarding other actions the retailer might be taking, which can affect future sales.

Which of the Following Describes the Limitations of Vendor-Managed Inventory