A downside to which contract is that it leads to surplus inventory that must be salvaged or disposed?

Question

Quizplus · Accepted Answer

A buyback or returns contract allows the retailer to send back unsold inventory to the supplier. However, this can result in surplus inventory that may be difficult to sell or must be disposed of, leading to additional costs for the supplier. The other contract options listed (revenue-sharing and quantity flexibility) do not necessarily lead to surplus inventory.

A Downside to Which Contract Is That It Leads to Surplus