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Exam CSCP topic 1 question 712 discussion

Actual exam question from APICS's CSCP
Question #: 712
Topic #: 1
[All CSCP Questions]

When negotiating with a supplier for strategic components that have high demand variability, which of the following types of contracts would be the best for the buyer to minimize stockouts and unused inventory?

  • A. Revenue sharing
  • B. Buy-back
  • C. Sales rebate
  • D. Firm-fixed price
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Suggested Answer: D 🗳️
by CSPark000 at June 15, 2023, 12:04 p.m.

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Rajiv8047
11 months, 3 weeks ago
Selected Answer: B
A buy-back contract allows the buyer to return unsold inventory up to a certain percentage and receive a refund or credit. This type of agreement reduces the risk of holding excess inventory, particularly in situations where demand is unpredictable.
upvoted 1 times
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CSPark000
1 year, 5 months ago
Selected Answer: B
Buy back ??
upvoted 1 times
...

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