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Supply Chain Management Professional (SCMP) · Question

What is the primary objective of 'vendor managed inventory' (VMI) programs?

VMI aims to have the supplier manage the inventory levels at the buyer's location, optimizing stock and reducing buyer effort.

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Question: What is the primary objective of 'vendor managed inventory' (VMI) programs?

Answer options: ✅ To shift inventory management responsibility to the supplier

  • To reduce the buyer's procurement costs through bulk purchasing
  • To eliminate the need for forecasting by the buyer
  • To increase the number of active suppliers in the supply chain

Correct answer: To shift inventory management responsibility to the supplier

Explanation: VMI aims to have the supplier manage the inventory levels at the buyer's location, optimizing stock and reducing buyer effort.

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