Ceramics Distributing Co. wants to keep its inventory low. Which of the following would be LEAST likely to encourage customers to take over more responsibility for the storage function?
A) offering a cumulative quantity discount
B) offering a stocking allowance
C) offering a noncumulative quantity discount
D) offering a seasonal discount

Question

Quizplus · Accepted Answer

Offering a cumulative quantity discount would encourage customers to order more in one shipment, which could lead to them needing to store the excess inventory. The other options (B, C, and D) may incentivize customers to take on some storage responsibility in exchange for cost savings or benefits, such as a stocking allowance or seasonal discount.