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

Forward Buying

The practice of purchasing stock in larger quantities than normal in anticipation of price increases or demand spikes.

Excess Inventory

The surplus of stock that exceeds the demand, leading to increased holding costs and potential obsolescence.

Total Cost

The complete sum of all costs associated with the production or provision of goods or services, including fixed and variable costs.