To improve overall profits,the supplier must design a contract that

Question

Quizplus · Accepted Answer

To improve overall profits, the supplier needs to focus on all three aspects - increasing purchase quantity, ensuring product availability, and managing demand uncertainty. By designing a contract that encourages the buyer to purchase more, the supplier can increase the volume of sales. Similarly, by ensuring the availability of the product at all times, the supplier can attract more customers and increase sales. Finally, sharing in the buyer's demand uncertainty through a suitable contract can provide a safety net to mitigate the risks associated with fluctuations in demand. Therefore, the best choice is D, i.e., all of the above.

To Improve Overall Profits,the Supplier Must Design a Contract That