What is the practice called when a buyer purchases more than the required quantity to avoid future price increases?

The practice described is known as forward buying. This strategy involves a buyer purchasing larger quantities of a product than they currently need to hedge against expected future price increases. By securing a larger volume at current rates, they mitigate the risk of paying more later, thus managing costs effectively.

Forward buying serves as a financial strategy that benefits buyers by locking in prices and ensuring a stable supply without the immediate need for that extra quantity. This can be particularly useful in industries where price fluctuations are common or where materials are subject to scarcity, enabling businesses to optimize their procurement strategy for better financial performance.

In contrast, stockpiling typically focuses more on holding large quantities of inventory continuously, rather than as a proactive measure against future price changes. Just-in-time purchasing emphasizes minimizing inventory levels by receiving goods only as they are needed in the production process. Order forecasting involves predicting future demand to make informed purchasing decisions, but it does not specifically address the tactic of purchasing beyond current needs to avoid future increases. Thus, forward buying specifically captures the essence of the proactive purchasing strategy described in the question.