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Supply Chain Management (SCM) MCQs
A company implementing Vendor Managed Inventory (VMI) is likely to experience ____.
15. A company implementing Vendor Managed Inventory (VMI) is likely to experience ____.
- Decreased stockouts
- Increased inventory levels
- Longer order processing times
- Reduced reliance on suppliers
Answer
The correct answer is: A) Decreased stockouts
Explanation
VMI often leads to decreased stockouts as suppliers manage inventory levels to ensure product availability.