What term describes inventory that is in the transportation network and the distribution system?

What term describes inventory that is in the transportation network and the distribution system?

• A. In-transit inventory
• B. Buffer stock
• C. Pipeline stock
• D. Cycle stock

Answer: (C)

Pipeline stock is inventory that is in transit through the transportation network and distribution system. It represents the goods moving between stages of the supply chain—between suppliers, manufacturers, warehouses, and customers—while lead times and transfers are occurring. Because the journey takes time, a portion of stock exists only as it moves through the network and hasn’t yet been received at its final destination. This distinguishes it from stock sitting at a facility (cycle stock) or safety reserves held to cover variability (buffer stock). In-transit inventory is closely related, but pipeline stock emphasizes the flow of goods across the entire network through multiple legs and transfer points.

Pipeline stock is inventory that is in transit through the transportation network and distribution system. It represents the goods moving between stages of the supply chain—between suppliers, manufacturers, warehouses, and customers—while lead times and transfers are occurring. Because the journey takes time, a portion of stock exists only as it moves through the network and hasn’t yet been received at its final destination. This distinguishes it from stock sitting at a facility (cycle stock) or safety reserves held to cover variability (buffer stock). In-transit inventory is closely related, but pipeline stock emphasizes the flow of goods across the entire network through multiple legs and transfer points.