Stockless Purchasing specifically describes a system where the buying organization has which responsibility?

Stockless Purchasing specifically describes a system where the buying organization has which responsibility?

• A. No responsibility for inventory of the goods being purchased
• B. Full responsibility for inventory at all times
• C. Partial responsibility for inventory with supplier support
• D. Shared responsibility with the supplier for inventory management

Answer: (A)

Stockless purchasing shifts the ownership and management of inventory to the supplier. The buying organization simply specifies what is needed, places the order, and pays for the goods when delivered. Because the supplier holds and controls the stock, the buyer bears no responsibility for inventory levels, storage, obsolescence, or stockouts. This arrangement is meant to reduce the buyer’s carrying costs and risk, keeping inventory out of the buyer’s hands. The other descriptions would imply the buyer retains some inventory control or shared responsibility, which stockless purchasing is not about.

Stockless purchasing shifts the ownership and management of inventory to the supplier. The buying organization simply specifies what is needed, places the order, and pays for the goods when delivered. Because the supplier holds and controls the stock, the buyer bears no responsibility for inventory levels, storage, obsolescence, or stockouts. This arrangement is meant to reduce the buyer’s carrying costs and risk, keeping inventory out of the buyer’s hands. The other descriptions would imply the buyer retains some inventory control or shared responsibility, which stockless purchasing is not about.