In a retail firm's implementation of vendor-managed inventory (VMI), what trading partners are responsible for setting target inventory levels and making restocking decisions?
A) Retail consumers and vendors
B) Retailer and its suppliers
C) Retailer and its buyers
D) Retail consumers and retailers

Question

Quizplus · Accepted Answer

In a vendor-managed inventory (VMI) system, the responsibility for setting target inventory levels and making restocking decisions lies with the retailer and its suppliers (trading partners). The suppliers have access to real-time inventory data and can proactively restock the retailer's inventory as needed, based on agreed-upon target levels. This allows for better inventory management and reduces the risk of stockouts or overstocking.

In a Retail Firm's Implementation of Vendor-Managed Inventory (VMI), What