Discussion Question

Do you agree with the concept of a supplier having consignment stock at the buyer's premises and the buyer only paying when the stock is used? Why would a supplier agree to this?

The Bluebird Transport company manufactures a range of travel homes. The Production Director has suggested that any inventory valued at less than $5$ an item should be made available as open access on the shop floor. No requisitions will be required to access the inventory. What are the procurement implications?