Question

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. postponement. B. ​e-procurement. C. ​vendor-managed inventory. D. single stage control of replenishment.

Answer 1

Answer:This is an example of C. ​vendor-managed inventory.

Step-by-step explanation:

Vendor Managed Inventory (VMI) occurs in a business when the people buying the product supply information to the vendor responsible for the product they buy in which the vendor uses that information to maintain an inventory of their material where the buyer is found.

VMI gives an advantage to the business to never reach a stage where they may not have sufficient stock.

Benefits of Using VMI

Eliminate safety attached on stock

Decreases inventory levels

Reduce administration cost

The customers don't require safety stock because it is managed by the supplier , lower inventory increases the customer's savings