CIM Vendor-Managed Inventory 5

Question 1

What is the primary difference between VMI and traditional buyer-managed replenishment?

Accepted Answer

In VMI, the supplier decides when and how much to replenish; in traditional, the buyer does

Answer

The defining characteristic of VMI is that replenishment authority is transferred from the buyer to the supplier.

Question 2

Which metric helps evaluate whether a VMI program is reducing excess inventory for the buyer?

Accepted Answer

Inventory turnover ratio

Answer

A rising inventory turnover ratio indicates that the vendor is keeping stock lean and aligned with actual demand rather than overstocking.

Question 3

In a manufacturing VMI scenario, raw material suppliers monitoring the manufacturer's production schedule directly is an example of:

Accepted Answer

Production-triggered replenishment

Answer

When suppliers use the customer's production schedule as the replenishment trigger, they replenish based on planned consumption rather than historical demand.

Question 4

A retailer wants to implement VMI but is concerned about giving a supplier competitive intelligence. The best mitigation strategy is:

Accepted Answer

Sharing only aggregated SKU-level data with category-level access restrictions

Answer

Limiting data granularity to what the supplier needs for replenishment decisions protects sensitive competitive information while enabling VMI.

Question 5

The transition from traditional purchasing to VMI typically requires the buyer's organization to shift focus toward:

Accepted Answer

Supplier performance management and relationship oversight

Answer

With transactional ordering delegated to the vendor, the buyer's role evolves to monitoring vendor performance and managing the VMI partnership.

(CIM) Certified Inventory Manager Practice Test

(CIM) Certified Inventory Manager Practice Test

CIM Vendor-Managed Inventory 5