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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The system described is known as vendor-managed inventory (VMI), where the vendor (pharmaceutical company) takes on the responsibility of managing the inventory levels of the retailer. This allows for more efficient inventory management and replenishment, as the vendor can monitor sales and adjust shipments accordingly.

Pharmaceutical Companies Such as Eli Lilly and SmithKline Beecham Use