What product should be carried in carried in inventory and what products should be left with the supplier to be shipped directly in response to a customer?
It actually depends on the product and the supply agreement.
Some products are "held" by the supplier as part of a procurement
agreement. This, for example may be fragile apparatus which if
taken and help by the customer in their storage could become
damaged and rendered dangerous or useless. Some customers with have
a fast - slow usage policy on inventory. They will need some
products every day to maintain flow. Others products they create
for instance may need some part once a month and therefore are not
routinely sent in but are called in on demand by the customer.
Related Q&A：
Oh, well, if some goods from a purchase are damaged upon receipt and returned to the supplier, the AP department is usually responsible for handling the financial aspects of this situation. They need to make sure that the payment for those damaged goods is adjusted or refunded appropriately. They might have to communicate with the supplier, check the purchase documents, and update the accounting records. It can be a bit of a hassle, but it's all part of making sure everything is sorted out right and fair.
