A contract that allows the buyer to modify the order (within limits agreed to by the supplier)as demand visibility increases closer to the point of sale is a
A)buyback or returns contract.
B)revenue-sharing contract.
C)quantity flexibility contract.
D)quantity discount contract.

Question

Quizplus · Accepted Answer

A quantity flexibility contract allows the buyer to modify the order within agreed-upon limits as demand visibility increases closer to the point of sale. This type of contract provides flexibility to both the buyer and supplier to adjust the order size based on market demand. Buyback or returns contract allows the buyer to return the products to the supplier. Revenue-sharing contract allows the sharing of revenue between the buyer and supplier based on the performance of the product. Quantity discount contract provides price discounts to the buyer for ordering larger quantities of a product.

A Contract That Allows the Buyer to Modify the Order