Question

According to the text, when a buyer allows some of their suppliers to observe actual demand, create a forecast and determine their resupply schedules, it is known as:

1) Passive integration
2) Collaborative inventory management
3) Vendor managed inventory
4) Cloud-based supply chain management

Answer 1

Vendor managed inventory is when a buyer allows some suppliers to observe demand and manage inventory levels. It can improve supply chain efficiency.

Step-by-step explanation:

According to the given text, when a buyer allows some of their suppliers to observe actual demand, create a forecast, and determine their resupply schedules, it is known as vendor managed inventory. In this approach, the suppliers take responsibility for managing inventory levels based on the buyer's demand information. This can help improve supply chain efficiency and reduce stockouts.