VMI is ______.
A)a channel alignment method that mitigates the bullwhip effect caused by forecast updates
B)vertically merged integration
C)when the vendor merges his inventory with the inventory of the company
D)a way to reduce cost of inventory transportation

Question

Quizplus · Accepted Answer

VMI stands for Vendor Managed Inventory, which is a channel alignment method that allows the vendor to manage and replenish the inventory of the company based on agreed-upon inventory levels. This helps to reduce the bullwhip effect caused by forecast updates and improves supply chain collaboration. Therefore, option A is the correct answer while options B, C, and D are incorrect.

VMI Is ______