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A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of
A. ​e-procurement.
B. ​vendor-managed inventory.
C. postponement.
D. single stage control of replenishment.

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Answer:

B. ​vendor-managed inventory.

Explanation:

A simplified approach to inventory management and order fulfillment is the Vendor Managed Inventory (VMI).

VMI includes coordination between manufacturers and their customers (e.g. distributors, retailers, OEMs or end users of products) which transforms the conventional purchasing process.

VMI's objective is to harmonize business goals for both suppliers and their customers and streamline supply chain operations.

  • Higher Sales.
  • Best and Improved Service.
  • Improved Inventory Turns

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