Which of the following is an effective response to the problem of forward buying?
A) To have several vendors for each product
B) To evaluate potential suppliers and their offerings
C) To secure volume discounts
D) To provide an adequate supply of the right product or service at the best possible price
E) To separate the order quantity from the shipping quantity through an annual contract

Question

Quizplus · Accepted Answer

Forward buying, where buyers purchase more inventory than needed to take advantage of discounts, can lead to excess inventory and other inefficiencies. Separating the order quantity from the shipping quantity through an annual contract allows for securing discounts based on the total volume purchased over time while receiving shipments as needed, thus effectively addressing the issue.

Which of the Following Is an Effective Response to the Problem