Question: Buy - Back Contract is an operations management tool in which a manufacturer specifies a . . . . . . . . . .
BuyBack Contract is an operations management tool in which a manufacturer specifies a price and a price at which the retailer can return any unsold items at the end of the season. The buyback contract results in an increase in the salvage value for the retailer, which induces the retailer to order a larger quantity. The manufacturer is willing to take on some of the cost of overstocking, because:
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