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Vendor-managed inventory involves the buyer transferring the responsibility for:
Profit Margin
A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing net income and revenue.
Days' Sales
A financial metric that calculates the average time it takes for a company to convert its inventory into sales.
Receivables Ratio
The Receivables Ratio, also known as the Accounts Receivable Turnover Ratio, measures how efficiently a company collects cash from its customers by comparing sales to the average receivables.
Outstanding Accounts
Accounts or invoices that have been billed but not yet paid by customers.
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