APICS Certified Supply Chain Professional (CSCP) — Question 231

Which of the following supplier actions is most likely to provide an incentive for retailers to share demand data with their trading partners?

Answer options

• A. Implementing vendor-managed inventory (VMI) at the retailers
• B. Executing capacity-reservation contracts with the retailers
• C. Including a requirement in the supply contract
• D. Developing demand-sharing software for the retailers

Correct answer: A

Explanation

Implementing vendor-managed inventory (VMI) allows suppliers to manage stock levels based on actual demand data, creating a strong incentive for retailers to share this information. Other options, such as contracts or software development, may not directly motivate retailers as effectively as the collaborative nature of VMI does.