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What I have understood,
This concept is also used in VMI (Vendor Managed Inventory). This way your supplier manages the inventory for you and in return either advance payment is made or good will is used for satisfaction of supplier.
This way normal floor inventory levels are kept in production facility.
If i understand the question Correctly the best bushiness that have a very small inventory that may only cover one day and quick cash cycle is the FMCG.
It has a good stability , Sustainability and high ROI
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