We can divide bulk buying in commodities , engineering and packaging .
Commodities are seasonal in nature and prices fluctuates as per the seasons with supply
and demand effects on price .
Some material have impact on price due to seasons such as cement , paint etc are
cheaper in rainy season to buy then to buy them in any other season .Similiarly for agri
commodities prices are on lower side when we have harvesting season . Similiarly sugar
prices ae higher side on festival season .
One has to be alert to anticipate any increase or decrease in prices . These can be
monitored through agencies giving services on prices .
The basic principle for company is to hold the stocks when prices are high and procure when
prices are low in larger volumes . Such decisions depends on stock in hand for a company
and the storage capacity available .