A ________ plan establishes a long-term relationship in which the supplier promises to resupply the buyer as needed, at agreed-upon prices, over a specified period of time.
A) stockless purchase
B) direct stock purchase
C) defined contribution
D) stock purchase
E) share purchase

Question

Quizplus · Accepted Answer

A stockless purchase plan is designed to minimize the inventory that a buyer must hold by establishing a long-term relationship with a supplier who agrees to resupply as needed, at predetermined prices, over a specified time frame. This approach is often used in industries where inventory costs are a significant concern.

A ________ Plan Establishes a Long-Term Relationship in Which the Supplier