In a vendor-managed inventory program, who initiates replenishment?

• A. The supplier.
• B. The customer.
• C. The carrier.
• D. A third-party auditor.

Answer: (C)

In vendor-managed inventory, the supplier takes responsibility for monitoring stock levels and deciding when to restock based on the data provided by the customer. The customer shares real-time inventory and consumption information, and the supplier uses that to determine when and how much to replenish. When the trigger is reached, the supplier initiates the replenishment order and coordinates with the carrier to deliver the goods. The carrier handles transport after the order is created, and a third-party auditor doesn’t initiate replenishment. So the replenishment is initiated by the supplier.