Aqua Manufacturing Limited is one of the leading dry blend beverage companies in Jamaica. Their portfolio includes Aqua Food Drink, La-Soy Lactose-Free, Porridge Mix, Whole Milk and Readi Milk. These are all household names that stand for quality throughout the Caribbean, North America, Canada and the UK. As a company with global intent, it has a strong business relationship with its suppliers. Either independently or through contract manufacturers, the company manufactures, markets, and sells a variety of products through its export division.

For a manufacturer that sells to many retailers, why does a quantity flexibility contract with its retailers result in less information distortion than a buy-back contract?