Which of the Following Statements About Vendor-Managed Inventory (VMI)is True

Multiple Choice

Which of the following statements about vendor-managed inventory (VMI) is true?

A) To make VMI possible, the manufacturer must maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies.
B) Manufacturers using the VMI business model manage the inventories themselves and send out requests for additional items to the vendors as needed.
C) Companies using this strategy try to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production.
D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data.
E) Retailers using this strategy allow suppliers to maintain ownership of inventory within their warehouses or stores until items are scanned at the point of sale.