Before agreeing to receive which vendor service must the storage room be large enough to hold the product?

• A. Product warranty
• B. Free delivery
• C. Credit term extension
• D. Quantity discount

Answer: (D)

The concept here is how storage capacity interacts with purchasing options that involve larger quantities. When you agree to a quantity discount, you’re committing to buying more units upfront. Those extra units must be stored somewhere until they’re used, so having enough storage space is a prerequisite to taking advantage of the discount. If the storage room isn’t large enough, you can’t safely or efficiently hold the additional inventory, making the discount impractical.

Other options don’t hinge on stock size before receipt: a product warranty covers post-purchase protection, not how much you buy; free delivery is about shipping options and doesn’t require extra storage before arrival; and extending credit terms affects when you pay, not how much you must store.