A Contract That Decreases Overall Costs but Leads to Higher

question 49

Multiple Choice

A contract that decreases overall costs but leads to higher lot sizes and thus higher levels of inventory in the supply chain is a

• A) buyback or returns contract.
• B) revenue-sharing contract.
• C) quantity flexibility contract.
• D) quantity discount contract.

---

Definitions:

Security Returns

The gains or losses on an investment over a specific period, including dividends, interest, and capital gains, usually expressed as a percentage.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points or investment returns.

Arithmetic Return

The simple average of a series of periodic returns of an investment.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.