Required: Provide your answers to the following questions.

1. What is your most valued learning? (Max of 1-2 sentences.)

2. What are your three key takeaways? Compose your answer by relating the
journal article with the current lesson. (Max of 3-5 sentences.)

According to the article, inventory consignment (IC) has been viewed as a

method of shifting the ownership and cost burden of inventory from buyer to supplier to
benefit the buyer since when a consignment sale is used by a firm, the consigned goods
remain in the consignor’s (supplier) inventory until they are sold to the end customers of
the consignee (buyer). The most valued learning from the article is that there are
different types of inventories such as traditional inventory programs, vendor managed
inventory, and inventory consignment but typically, they have similarities and
differences by means of inventory ownership, responsibility for ordering, and physical
location of the inventory in which IC is in the middle ground of these key elements.

In relation to the current lesson about consignment sales, the ownership of the
consigned goods is still considered in the consignor’s inventory even if the location of
inventory and ordering responsibility is in the consignee. This allows the consignor to
recognize revenues only when the consigned goods are sold to end customers. Also, as
a key takeaway, IC programs, as stated in the article, are derived from improved
production planning and information sharing processes which can be improved through
software related and help in reducing costs related to the consignment. Hence, IC can
be a source of competitive advantage on the market which benefits both the consignor
and consignee.