This describes which of the following buying strategies?

An organization purchases materials beyond current and anticipated requirements in expectation of a price increase or shortage, in the hope that it will profit from the sale of the materials at a later date.

This describes which of the following buying strategies?
A . Consignment
B . Forward
C . Speculative
D . Spot

View Answer

Answer: C

Explanation:

Speculative buying occurs when an organization purchases more inventory than necessary based on the forecasted increase in prices or potential shortages. This strategy aims to capitalize on market conditions, potentially resulting in financial gains.

Reference: Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management.