When there is a minimal need for close long-term cooperation between a company and its suppliers, which of the following strategies is the most appropriate?
A)Full integration
B)Taper integration
C)Competitive bidding
D)Long-term contracting
E)Diversification based on economies of scope

Question

Quizplus · Accepted Answer

Competitive bidding is the most appropriate strategy when there is a minimal need for close long-term cooperation between a company and its suppliers. This strategy involves inviting bids from multiple suppliers and selecting the most cost-effective one for each particular project or purchase. It is suitable for situations where the company has a relatively low volume of purchases or where the products or services required are standardized and readily available in the market.

When There Is a Minimal Need for Close Long-Term Cooperation