Under 'FOB Shipping Point, Freight Allowed', when does the title pass to the healthcare facility?

In the context of 'FOB Shipping Point, Freight Allowed', the title to the goods passes to the healthcare facility at the moment the goods are picked up by the carrier. This term, 'FOB' stands for 'Free On Board', which indicates when ownership and responsibility for the goods transfer from the seller to the buyer.

When the goods are picked up by the carrier, it signifies that they are in transit and the buyer has accepted responsibility for them, even before they reach their final destination. This means that if any issues arise during shipping, such as loss or damage, the responsibility falls to the healthcare facility.

The other options do not accurately reflect the terms under 'FOB Shipping Point'. The title does not pass when the goods arrive at the facility or when the order is placed, as these moments occur after the transfer of liability has already happened. Similarly, title passing upon payment is not in line with FOB terms, which focus explicitly on the point at which goods are taken into transit. Understanding this concept is essential for proper inventory management and financial accountability within healthcare supply chain operations.