Key indicators for how the business relationship is performing are also agreed upon, such as a ratio of total sales to average inventory, and profits.

Even with historic inventory reduction rates, the inventory-to-sales ratio skyrocketed from a low last June of 1.25 to 1.46 by December. That is the swiftest rise in that benchmark since 1982.

The Sales Ratio is more sensitive to Inventory Turnover when less than 1.