A company that sells building materials often had difficulty obtaining lumber from one of its suppliers. The company recently bought the lumber supplier in order to enhance coordination. Which strategy does this scenario demonstrate?

Forward vertical integration refers to a company acquiring or merging with distributors or retailers to gain control over the distribution of its products. In this scenario, the company is not moving towards the customer or the end user; rather, it is moving upstream to secure its supply source, making this option incorrect.

Vendor managed inventory (VMI) is a supply chain practice where the supplier manages the inventory levels of their products at the retailer's location. This strategy does not apply here, as the company is not implementing a VMI system but is instead buying the supplier to gain direct control over the lumber sourcing.

A lean supply chain focuses on minimizing waste and maximizing efficiency in supply chain processes. While improving coordination may lead to a more efficient operation, the core action of acquiring the supplier does not inherently align with the principles of lean supply chain management.