The movement of that inventory is documented in the process of when they record a sale, and when their stock refers to a specific shipment and location. Once that buyer (in this case, the car manufacturer) pays for them, they’re considered part of that manufacturer’s inventory. These items are considered part of the shipper’s inventory during their transit-up until the buyer pays for them. Think of a shipment of automotive parts from Germany that takes a month to arrive to a car manufacturer. Overseas freight shipments, particularly. There are some situations where it takes weeks or months for inventory to change hands. You can use this when you need a pipeline inventory calculation to check in with. So we wouldn’t dare define pipeline inventory without an example. It can be one of the trickier types of inventory. The bigger a company is, the more pipeline inventory it has, and the more important it is to track it accurately.
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