Stockless purchasing?

Stockless purchasing?

• A. A system where the buying organization has full responsibility for inventory
• B. A system whereby the buying organization has no responsibility for inventory of the goods being purchased
• C. A system that requires on-site storage of all goods
• D. A system that uses vendor-managed inventory exclusively

Answer: (B)

Stockless purchasing means the supplier takes on the inventory responsibility, keeping and managing the stock needed by the buyer so the buying organization does not hold or control the inventory itself. In this setup, the buyer focuses on specifying needs and consuming the goods, while the supplier ensures availability, handles replenishment, and often owns the inventory. This arrangement reduces the buyer’s carrying costs and risk from obsolescence or stockouts because inventory control and stock levels are managed by the supplier. It isn’t required that all goods sit on the buyer’s premises, since stockless can involve the supplier storing stock at their facility or at an agreed location while still ensuring timely delivery. Vendor-managed inventory is a related idea where the supplier monitors and replenishes based on agreed triggers, but stockless purchasing doesn’t imply exclusive use of that approach.

Stockless purchasing means the supplier takes on the inventory responsibility, keeping and managing the stock needed by the buyer so the buying organization does not hold or control the inventory itself. In this setup, the buyer focuses on specifying needs and consuming the goods, while the supplier ensures availability, handles replenishment, and often owns the inventory. This arrangement reduces the buyer’s carrying costs and risk from obsolescence or stockouts because inventory control and stock levels are managed by the supplier. It isn’t required that all goods sit on the buyer’s premises, since stockless can involve the supplier storing stock at their facility or at an agreed location while still ensuring timely delivery. Vendor-managed inventory is a related idea where the supplier monitors and replenishes based on agreed triggers, but stockless purchasing doesn’t imply exclusive use of that approach.