Understanding Vendor Managed Inventory (VMI) Agreements, Lecture notes of Business Accounting

Download Understanding Vendor Managed Inventory (VMI) Agreements and more Lecture notes Business Accounting in PDF only on Docsity! SCM 300 According to the video lecture, which of the following would NOT be part of a typical VMI agreement between buyers and suppliers? O Vendors stock the shelves and remove expired product O Retail stores share sales and inventory data with vendors O Vendors deliver goods to the retail stores O Retail stores decide on when orders are placed O Vendors monitor inventories and prep orders as needed Vendor Managed Inventory (VMI) is a business model where the buyer provides the supplier with information about its inventory levels and sales, and the supplier takes full responsibility for maintaining an agreed inventory level at the buyer's location. The supplier decides when to replenish and how much to replenish. From the options provided, the following would NOT typically be part of a VMI agreement:  Retail stores decide on when orders are placed In a VMI agreement, the responsibility of deciding when to place orders typically falls on the vendor, not the retail store. The vendor monitors the inventory levels and prepares orders as needed based on the data shared by the retail store. This is one of the key features of VMI, as it shifts the responsibility of inventory management from the buyer to the supplier.