A manufacturing company has several inexpensive items that are critical to the production process. The supply of these items has been depleted several times.
Which of the following actions is most likely to reduce stockouts?
A manufacturing company has several inexpensive items that are critical to the production process. The supply of these items has been depleted several times.
Which of the following actions is most likely to reduce stockouts?
Initiating a vendor-managed inventory (VMI) program for the items is most likely to reduce stockouts. In a VMI program, the supplier takes responsibility for maintaining the inventory levels of the items at the customer's location based on real-time demand and usage patterns. This ensures a more efficient and responsive supply chain, minimizing the risk of stockouts, especially for critical items in the production process.
for inexpensive items. just increase inventory level will help
VMI program involves the supplier managing the inventory levels of the items at the customer's location based on agreed-upon criteria such as demand forecasts, usage patterns, and lead times.