![]() ![]() However, if the buyer hasn’t paid for the goods, they are considered to be the seller’s or manufacturer’s inventory the moment the payment is made, regardless of whether the buyer has got custody of the products, it becomes the pipeline inventory of the recipient. Products in the supply chain of a business, that have been paid for and have been shipped, from the pipeline inventory of the buyer. It is important to know what is your level of pipeline stock as it enables you to ascertain how much of your money is otherwise engaged in inventory and holding costs etc.īusinesses that deal in products with long lead times say handmade clothing, for example, have to be especially attentive about pipeline inventory production may take months if not weeks, and inventory levels are not accurately ascertained by counting stock at hand.ĪLSO READ: What is Batch Picking? Functions of Pipeline Inventory It is called pipeline inventory until it reaches the buyer’s warehouse. When a business purchases stock from a manufacturer, it is viewed as pipeline inventory as it is in the course of being transported, provided the payment is made. The term pipeline inventory means whatever stock of products that have not yet reached the business warehouse but is on the way, or in the ‘pipeline’. In this article, we will examine two important types of inventory: pipeline inventory and decoupling inventory. Inventory management is not limited to the products on your shelves or in the warehouse. If we talk about any company that deals in products, inventory is the most critical part of their business operations it is absolutely essential that you manage your inventory properly to keep your operations running smoothly. Pipeline Inventory and Decoupling Inventory
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |