The retailer can justify the forward buying when
A)they have inadvertently built up a lot of excess inventory.
B)the forward buy allows the manufacturer to smooth demand by shifting it from peak to low-demand periods.
C)it decreases his total cost.
D)A and C only

Question

Quizplus · Accepted Answer

Forward buying is justified when it decreases the retailer's total cost, as it allows them to purchase goods at a lower price and potentially increase their profit margins.

The Retailer Can Justify the Forward Buying When