Asked by
Christian Nichols
on Oct 18, 2024
Verified
Promoting during a peak demand month may decrease overall profitability if
A) a small fraction of the demand increase results from a forward buy.
B) any of the demand increase results from a forward buy.
C) a significant fraction of the demand increase results from a forward buy.
D) none of the above
Forward Buy
A purchasing strategy where a buyer purchases more inventory than currently needed at a lower price, anticipating future price increases or supply shortages.
Peak Demand
The period of highest customer demand for a product or service, which can strain resources and require careful planning to manage effectively.
Overall Profitability
A measure of the total financial gain or success of a business after all expenses and costs have been subtracted from revenue.
- Evaluate how promotional strategies affect inventory stocks.
- Become familiar with forward buying and its implications for supply chain logistics.
Verified Answer
RN
Learning Objectives
- Evaluate how promotional strategies affect inventory stocks.
- Become familiar with forward buying and its implications for supply chain logistics.