INTE Exam Dumps : Supply Management Integration

Vendor-managed inventory (VMI) is an effective strategy for transferring risks related to inventory carrying costs, warehousing costs, and re-stocking costs to the supplier. In VMI, the supplier manages inventory levels, ensuring that stock is replenished as needed, which reduces the manufacturer's burden of inventory management and associated risks.

The EOQ formula considers order costs and carrying costs. With the increase in carrying costs from $4 to $6 in Year 2, the EOQ will decrease, specifically to 32 units, as higher carrying costs lead to lower optimal order quantities. This balances inventory holding costs against order costs. Reference: Economic Order Quantity calculation and inventory management.

When considering a new warehouse's environmental impact, the building's total carbon footprint (Option A) should be given the greatest consideration. This encompasses the overall emissions and energy consumption of the warehouse, which has a broader and more significant effect on the environment compared to specific aspects like air conditioning efficiency or light bulb costs. By focusing on the total carbon footprint, the firm can address both direct and indirect emissions, ensuring a comprehensive approach to sustainability. Reference: Environmental Protection Agency guidelines on carbon footprint assessments.