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Supply Chain Management Professional (SCMP) · Question

What is the main objective of Vendor Managed Inventory (VMI)?

VMI empowers the supplier to manage and replenish inventory on behalf of the buyer, optimizing stock levels and reducing stockouts.

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Question: What is the main objective of Vendor Managed Inventory (VMI)?

Answer options:

  • To shift inventory holding costs entirely to the buyer ✅ To allow the vendor to manage and replenish inventory at the buyer's location
  • To centralize all purchasing decisions with the buyer
  • To eliminate the need for forecasting systems

Correct answer: To allow the vendor to manage and replenish inventory at the buyer's location

Explanation: VMI empowers the supplier to manage and replenish inventory on behalf of the buyer, optimizing stock levels and reducing stockouts.

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