Pipeline inventory is a type of inventory that is usually maintained by
A) gasoline suppliers only.
B) electrical utilities only.
C) any manufacturer moving materials from point to point.
D) a trucking company making emergency shipments.

Question

Quizplus · Accepted Answer

Pipeline inventory is a type of inventory that is maintained by any manufacturer moving materials from point to point. This means that companies that use pipelines or other means of transportation to move materials from one point to another (e.g. oil and gas companies or chemical manufacturers) must maintain pipeline inventory to ensure that they have a steady supply of materials for their production processes. Gasoline suppliers or electrical utilities may also maintain pipeline inventory, but it is not limited to these industries. A trucking company making emergency shipments would not need to maintain pipeline inventory as they are not using pipelines to transport their goods.

Pipeline Inventory Is a Type of Inventory That Is Usually