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Submitted By poojapatil12
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1. For each type of retailor-supplier partnerships (quick response, continuous replenishment, VMI), discuss situations where that type would be preferred over the other two. Give real-world example of each partnership.

Quick Response Strategy Here the purchase order is decided upon and prepared by the Customer As the name suggests, it is primarily aimed at reducing the order response time along with achieving greater accuracy in shipping the correct goods to the correct location in correct quantities.

The above is achieved by using computerized equipment such as bar code readers, RFIDs etc.

This also speeds up the overall operating expenses, discount situations, out of stock situations etc.
Continuous Replenishment Here the inventory and everything related to the inventory is managed by the Vendor. The decisions are based on the levels which are decided on, on a prior basis. Here either the vendor continuously monitors a customer’s inventory, or a customer provides the vendor with all the current updated inventory data, to help him make timely shipments and maintain the customer’s inventory at agreed upon levels.
Vendor-managed Inventory Here the inventory is managed and the purchase order is prepared solely by the Vendor without any external involvement of the customer. Here either the supplier monitors the customer’s inventory with his own employees or receives information from the customer about his stock levels. The vendor automatically refills the stock, without the customer starting the purchase orders.
Quick Response (QR):
• The retailer is responsible to determine the order quantities and replenishment times. The supplier analyses his Point Of Sales data to provide an accurate demand forecast and schedule goods production in an optimum manner.
• This system if preferred when the relation between the supplier and the customer is newly formed

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