Consignment Inventory or Vendor-owned Inventory
Consignment inventory is an element of supply chain management in which the vendor inventory is held at the customer warehouse. The customer doesn’t pay for the goods until the goods are consumed, and in most cases, pays only the amount consumed. When receiving the inventory, the physical receipts and on-hand inventory transactions are posted in […]
What is Safety Stock?
Safety stock or buffer stock is the additional quantity of an item above the desired quantity that is held in the on-hand inventory. Such extra inventory is held with the sole purpose of avoiding the risk of running out of stock. Safety stock serves as an insurance or a cushion for manufacturers and retailers against […]