A contract that allows a retailer to return unsold inventory up to a specified amount,at an agreed upon price is a
A)buyback or returns contract.
B)revenue-sharing contract.
C)quantity flexibility contract.
D)quantity discount contract.

Question

Quizplus · Accepted Answer

A buyback or returns contract allows the retailer to return unsold inventory up to a certain amount at a pre-agreed upon price. This helps the retailer manage their inventory risk and incentivizes them to carry a larger inventory without worrying about being stuck with unsold items.

A Contract That Allows a Retailer to Return Unsold Inventory