Definicja investment buying

Procurement of stock over and above usual or current requirements to take account of a forthcoming price change made by a vendor.

The price change can result from a vendor promotion or trade deal coming to an end.

Since materials are generally sold at a higher price when the cost price is higher, investment buying can increase profits. The quantity to be procured is calculated using a number of different parameters, such as the procurement cost, the storage cost, and the difference between the old and new purchase price.