Council of Supply Chain Management Professionals (CSCMP) Practice Exam 2026 - Free CSCMP Practice Questions and Study Guide

Question: 1 / 400

In vendor managed inventory, who is primarily responsible for inventory levels?

Retailers

End consumers

Suppliers

In vendor managed inventory (VMI), suppliers are primarily responsible for managing inventory levels. This approach allows suppliers to take the lead in monitoring stock levels at the retailer's location and replenishing inventory as needed. By doing so, suppliers can leverage their expertise and insight into demand patterns, helping to minimize stockouts and excess inventory.

This responsibility shift ensures that inventory levels are aligned more closely with actual market demand, improving efficiency across the supply chain. As a result, the retailer can focus on other aspects of the business without the constant pressures of inventory management. The collaboration between suppliers and retailers in VMI leads to better visibility of inventory levels and reduced costs associated with overstocking or stockouts.

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