Question

Vendor managed inventories are A. an extreme case of forward inventory placement. B. used only for manufacturers. C. more expensive than traditional inventory methods but result in superior customer service. D. typically located on the​ supplier's site but actually owned by the customer.

Answer 1

Answer: Option A

Explanation: Vendor managed inventory refers to a framework in which the buyer let the vendor to take full responsibility to maintain the inventory level as per the buyer's consumption. Under this, the buyer provided the complete information to thew vendor.

Forward inventory placement refers to placing the inventory closer to the customer.

Hence from the above we can conclude that vendor management will bring the inventory closer to the customer.