What is the consignment stock Types of contract

Question

Accepted Answer

Consignment stock is inventory that is owned by a supplier but held by a customer until it is sold.

Consignment stock is a type of inventory management where the supplier retains ownership of the goods until they are sold by the customer.
The supplier only invoices the customer for the goods that have been sold, not for the entire consignment stock.
Consignment stock is often used in industries where the goods have a long shelf life, such as automotive or electronics.
Types of contracts for consignment stock include vendor-managed inventory (VMI) and consignment purchase agreements.

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