The practice of purchasing larger quantities than are currently needed because the discount is greater than the carrying costs is called:
A) JIT
B) Adversarial purchasing
C) Supply chain management
D) Forward buying
E) EOQ

Question

Quizplus · Accepted Answer

The practice of purchasing larger quantities than currently needed because the discount is greater than the carrying costs is called forward buying. This strategy can be advantageous for businesses that can store the excess inventory and use it in the future. However, it can also lead to increased carrying costs if the excess inventory cannot be utilized or if it becomes outdated.

The Practice of Purchasing Larger Quantities Than Are Currently Needed