Critical Reasoning (CR) | Re: ­Getting the retailer to buy more from the manufacturer is a necessary

­I think OptionD

The problem is that while manufacturers offer quantity discount on the buying of products for the retailers, the retailers take advantage of the situation and buy large quantity and instead of selling them right away, they do stockpiling of the products so that they can sell them in future at higher prices to customers.
This causes fluctuating demand and manufacturers face a fluctuation in the production and distribution cost.

A. If the manufacturers decrease the discount offered for quantity purchases - the retailers' purchase from them could possibly go down. That will not buy any profit to themanufacturers.

B. If they give larger discounts to the bigger retail chains when they purchase in large quantities - that does not in any way ensure that the bigger chain of the retailers will not do stockpiling for greaterprofit.

C. increase the quantity a retailer must buy before a discount applies -again may cost them less revenue fromretailers.

E. reduce the
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Statistics : Posted by Shubhradeep • on 09 Mar 2024, 11:04 • Replies 1 • Views 156

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