When a supplier offers a lower price for a larger quantity,the buyer should:
A)determine the return on investment.
B)order according to the EOQ model.
C)always take the quantity discount.
D)never take the quantity discount.
E)determine the preference of senior management.

Question

Quizplus · Accepted Answer

The buyer should determine the return on investment to assess if the cost savings from the discount outweigh the costs of holding additional inventory.

When a Supplier Offers a Lower Price for a Larger