In stockless purchasing, who typically bears the inventory responsibility?

• A. The buyer
• B. The supplier
• C. A third-party auditor
• D. The logistics department

Answer: (B)

Stockless purchasing puts ownership and risk of the inventory on the supplier. The supplier keeps the stock in their custody, handles storage and handling, and bears costs and risks such as obsolescence until the items are issued to production or consumed. The buyer doesn’t carry the stock or its storage risk; they request what they need and are billed for what is used. This arrangement helps the buyer reduce capital tied up in inventory while relying on the supplier to maintain availability. A third-party auditor focuses on verifying records, not owning inventory, and the logistics department moves goods but doesn’t assume ownership risk in this setup.