Commitment control

Commitment control

This is a term used in the retail industry. Retailers contract with their suppliers to supply a quantity of product in a specified time period to a specific location at an agreed price. The quantity and value of the balance of contract represents a risk to the retailer from the point of view that the retailer will have to discount a product that experiences a slump in demand. The setting of targets and maxima at various levels in the retailer's product hierarchies and time dimensions; and the subordination of purchassing to these limits, is known as "Commitment control".


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