Asked by Brianna Dames on May 20, 2024

verifed

Verified

As the total quantity for the season is broken up into multiple smaller orders,the buyer is better able to

A) match supply and demand and increase cost.
B) match supply and demand and increase profitability.
C) match supply and demand and decrease profitability.
D) match supply and demand and decrease product availability.

Multiple Smaller Orders

Refers to the strategy of breaking down large orders for goods or services into smaller ones, often to manage risk, improve cash flow, or respond more flexibly to market demand.

Match Supply

the process of adjusting production levels, inventory, or supply chain capacities to meet the current or forecasted demand effectively.

Increase Profitability

The process of enhancing a company's ability to generate profit, either by increasing revenue, reducing expenses, or both.

  • Examine the effects of numerous ordering cycles within a season on the management of inventory and the effectiveness of the supply chain.
verifed

Verified Answer

TZ
Trillest ZariTvMay 23, 2024
Final Answer :
B
Explanation :
Breaking up the total quantity into smaller orders allows the buyer to match supply and demand more effectively, which can lead to increased profitability. By having smaller quantities, the buyer can adjust their purchasing based on current demand and avoid overstocks or shortages. This can ultimately lead to better pricing and greater profitability for the business.