A Company Has Recently Implemented a Vendor-Managed Inventory (VMI) Program

A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?

A) Tighten the quality tolerances
B) Implement a supplier certification program
C) Implement quality inspection at the receiving dock
D) Charge back to the supplier the rework and scrap costs

Correct Answer:

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