External inventory types include which of the following?

External inventory types include which of the following?

• A. Pipeline inventory and obsolete inventory
• B. Cycle stock and safety stock
• C. ABC system and BIN system
• D. EOQ model and Base stock level

Answer: (A)

External inventory refers to stock that isn’t actively part of the immediate, usable on-hand supply at a location but still exists within the broader supply chain. Pipeline inventory fits this idea: it’s goods in transit between suppliers, plants, or warehouses, owned by the company but not yet available for use at a specific site. Obsolete inventory also counts as external in the sense that it no longer contributes to meeting current demand or supporting operations, even though it remains part of the overall inventory asset until it’s written off or disposed. In contrast, cycle stock and safety stock are the portions of inventory that are readily usable to fulfill demand at a location, so they’re considered internal to the operation. The ABC and BIN systems are methods for organizing and managing inventory, not types of inventory themselves. And EOQ modeling or base stock level are planning approaches for determining quantities, not categories of inventory.

External inventory refers to stock that isn’t actively part of the immediate, usable on-hand supply at a location but still exists within the broader supply chain. Pipeline inventory fits this idea: it’s goods in transit between suppliers, plants, or warehouses, owned by the company but not yet available for use at a specific site. Obsolete inventory also counts as external in the sense that it no longer contributes to meeting current demand or supporting operations, even though it remains part of the overall inventory asset until it’s written off or disposed.

In contrast, cycle stock and safety stock are the portions of inventory that are readily usable to fulfill demand at a location, so they’re considered internal to the operation. The ABC and BIN systems are methods for organizing and managing inventory, not types of inventory themselves. And EOQ modeling or base stock level are planning approaches for determining quantities, not categories of inventory.