Skip to main content

Supply Chain Management Professional (SCMP) · Question

What is the main benefit of implementing a 'Vendor Managed Inventory' (VMI) system?

VMI empowers the supplier to take responsibility for maintaining the buyer's inventory levels, often leading to improved efficiency and reduced stockouts.

Start free practice for Supply Chain Management Professional (SCMP)

200 questions · no signup required · 40 free questions per day

Start Practice →

Question: What is the main benefit of implementing a 'Vendor Managed Inventory' (VMI) system?

Answer options:

  • It shifts all inventory risk to the buyer. ✅ It allows the vendor to manage and replenish inventory at the buyer's location.
  • It eliminates the need for any inventory storage.
  • It guarantees lower unit prices for all purchased goods.

Correct answer: It allows the vendor to manage and replenish inventory at the buyer's location.

Explanation: VMI empowers the supplier to take responsibility for maintaining the buyer's inventory levels, often leading to improved efficiency and reduced stockouts.

Start free practice for Supply Chain Management Professional (SCMP)

200 questions · no signup required · 40 free questions per day

Start Practice →

More about Supply Chain Management Professional (SCMP)

Related Questions

More for Supply Chain Management Professional (SCMP) candidates

Ready to practice?

Free, no signup required. Build a wrong-question list as you go.

Start Free Supply Chain Management Professional (SCMP) Practice →

Related courses

Other Canadian certifications candidates often prepare for alongside this one.