APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 112

In a retail firm's implementation of vendor-managed inventory (VMI), what trading partners are responsible for setting target inventory levels and making restocking decisions?

Answer options

• A. Retail consumers and vendors
• B. Retailer and its suppliers
• C. Retailer and its buyers
• D. Retail consumers and retailers

Correct answer: B

Explanation

The correct answer is B, as the retailer and its suppliers collaboratively manage inventory levels and restocking decisions in a VMI setup. Options A, C, and D do not accurately represent the roles, as retail consumers do not participate in inventory management, and buyers are not directly responsible for the inventory levels in a VMI approach.