A manufacturing company has entered into a new contract with a major supplier of raw materials used
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A manufacturing company has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages their raw material inventory inside the manufacturer’s plant, and only bills the manufacturer when the manufacturer consumes the raw material. How is this likely to affect the manufacturer’s inventory turnover ratio?
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Related Book For
Operations And Supply Chain Management The Core
ISBN: 9781260238884
5th Edition
Authors: F. Robert Jacobs, Richard Chase
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