Pharmaceutical companies such as Eli Lilly and SmithKline Beecham use a system to make sure retailers carrying their products maintain predetermined inventory levels in stock.The pharmaceutical companies do this by a daily monitoring of sales at individual stores and will automatically ship products out when the stores are running low.This is called a(n):

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Vendor-managed inventory (VMI) is a system where the supplier monitors the inventory levels in their retailer's stores and automatically ships out products when the inventory levels are low. This system is used to ensure that the retailers always have enough products in stock, without having excess inventory. Eli Lilly and SmithKline Beecham use this system to manage their inventory levels at retail stores.

Pharmaceutical Companies Such as Eli Lilly and SmithKline Beecham Use