Question

Frito-Lay is an example of a company that partners with retailers by implementing a(n) _____ system, involving taking on the responsibility of managing inventory levels at the retailers where its products are sold.

Answer 1

Frito-Lay employs a Vendor-Managed Inventory (VMI) system to help retailers manage inventory levels, thereby ensuring product availability and optimizing shelf space.

Step-by-step explanation:

Frito-Lay is an example of a company that partners with retailers by implementing a Vendor-Managed Inventory (VMI) system. This system entails the supplier, in this case, Frito-Lay, taking on the responsibility of managing inventory levels at the retailers where its products are sold.

By doing so, the company ensures that their products are in stock, optimally placed, and fresh. The benefits of such a system include improved inventory turnover, reduced stockouts, and better shelf space optimization. This collaborative approach allows for a more efficient supply chain and increased customer satisfaction.