Consignment inventory requires that manufacturers

Consignment inventory is a supply chain model where the supplier (manufacturer) places goods at a customer's (retailer's) location but retains ownership. The manufacturer is not paid until the goods are sold to the end consumer. This arrangement requires the manufacturer to stock their products on the retailer's shelves and wait for payment, which is triggered by the actual purchase by the consumer. This shifts the financial risk of unsold inventory from the retailer to the manufacturer but can improve product availability and sales.

A. Payment is based on consumption or sale to the end consumer, not "supply." The manufacturer delivers to the retailer, not directly to the consumer in this model.
B. Payment is triggered by actual sales to the end consumer, not by a forecast. Forecasts are used for planning, but payment is based on consumption.
C. Payment is triggered by the sale of the product, not by a signal to refill stock. A refill signal might be part of the process, but it doesn't trigger payment.

1. APICS Dictionary, 16th Edition. Definition of "Consignment": "The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold."

2. Rushton, A., Croucher, P., & Baker, P. (2017). The Handbook of Logistics and Distribution Management (6th ed.). Kogan Page. Chapter 11, "Inventory and the Supply Chain," discusses consignment arrangements where payment is made upon sale.