APICS Exam CPIM Topic 1 Question 64 Discussion

Actual exam question for APICS's CPIM exam

Question #: 64
Topic #: 1

[All CPIM Questions]

Which of the following is an advantage of VMI?

ASuppliers can leverage better information to reduce inventory levels.

BThe customer can usually force additional concessions from the VMI supplier

CLead-times are increased

DMRP system operating costs decrease

Show Suggested Answer

Suggested Answer: A

by Merissa at Jan 04, 2023, 10:13 AM

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Margarett

14 days ago

I'm pretty sure the 'V' in VMI stands for 'Vendor,' not 'Victim.'

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Cathern

17 days ago

Wait, so option B is basically the supplier saying, 'Please, customer, take advantage of me'? Sounds like a bad deal.

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Belen

19 days ago

Lead-times increased? Seriously? That's the last thing I want in a supply chain management system.

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Gianna

20 days ago

D sounds like it would be the opposite of an advantage. Decreased MRP costs? That's just plain wrong.

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Jacquelyne

25 days ago

I can't believe option B is even an option. Who would want the customer to have more leverage over the supplier?

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Bev

17 hours ago

A) Suppliers can leverage better information to reduce inventory levels.

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Pete

4 days ago

A) Suppliers can leverage better information to reduce inventory levels.

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Felix

1 months ago

A is the correct answer! VMI helps suppliers manage inventory more efficiently, which benefits both parties.

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Shawna

18 hours ago

That's right! VMI allows suppliers to have more control over their inventory.

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Brett

1 months ago

A) Suppliers can leverage better information to reduce inventory levels.

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Daniel

2 months ago

Yes, VMI can lead to cost savings for suppliers by reducing inventory levels.

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Erin

2 months ago

I agree with Myra. It helps suppliers leverage better information.

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Myra

2 months ago

I think the advantage of VMI is that suppliers can reduce inventory levels.

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