CIM Vendor-Managed Inventory 4

Question 1

A VMI arrangement where the vendor owns inventory until the customer actually uses or sells it is called:

Accepted Answer

Consignment VMI

Answer

Consignment VMI keeps title with the supplier until the point of consumption or sale, reducing the customer's working capital requirements.

Question 2

Which of the following best describes 'demand transparency' in the context of VMI?

Accepted Answer

The supplier's access to the buyer's point-of-sale or usage data

Answer

Demand transparency means the supplier can see actual sales or consumption data at the customer's location, enabling accurate replenishment.

Question 3

In healthcare supply chains, VMI is often used in hospital stockrooms primarily to:

Accepted Answer

Reduce nurse time spent on supply requisitioning and ordering

Answer

VMI in hospitals shifts supply management to the vendor so clinical staff can focus on patient care rather than inventory tasks.

Question 4

When calculating the economic benefit of VMI to the buyer, which cost reduction is most directly attributable?

Accepted Answer

Reduction in purchase order processing and administration costs

Answer

Because the vendor manages replenishment, the buyer no longer needs to generate and process purchase orders, cutting procurement administrative costs.

Question 5

A VMI vendor notices the customer's sales are trending upward by 15% week over week. The correct response is to:

Accepted Answer

Proactively increase the replenishment quantity to prevent a stockout

Answer

Under VMI, the vendor is responsible for using demand signals to adjust replenishment proactively before stockouts occur.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Vendor-Managed Inventory 4