Consignment inventory requires that manufacturers:
A) deliver their products to the consumer and payment from consumers is based on supply.
B) stock their products on retail stores shelves and payment from consumers is based on forecast.
C) deliver their products to the consumer and wait for payment until consumers requires to refill stock level.
D) stock their products on retail stores shelves and wait for payment until consumers purchase the product.

Question

Quizplus · Accepted Answer

Consignment inventory involves manufacturers leaving their products on retail store shelves without receiving payment until the product is purchased by the consumer. Therefore, option D is the most accurate description of consignment inventory. Options A, B, and C do not accurately describe the concept of consignment inventory.

Consignment Inventory Requires That Manufacturers