Which of the following is not a reason for negotiating with suppliers?
A)The total contract value or volume is large.
B)The purchase is for widely available, commodity-like goods.
C)The purchase involves utilization of capital-intensive plant and equipment.
D)The purchase involves a special or collaborative relationship.
E)The supplier will perform important or significant value-added activities.

Question

Which of the following is not a reason for negotiating with suppliers?​
A)The total contract value or volume is large.
B)The purchase is for widely available, commodity-like goods.
C)The purchase involves utilization of capital-intensive plant and equipment.
D)The purchase involves a special or collaborative relationship.
E)The supplier will perform important or significant value-added activities.

Quizplus · Accepted Answer

Negotiating with suppliers is usually done for reasons such as the total contract value being large, involving a special or collaborative relationship, the supplier performing important or significant value-added activities, or involving utilization of capital-intensive plant and equipment. However, if the purchase is for widely available, commodity-like goods, negotiation may be unnecessary as there are likely multiple suppliers offering similar products at similar prices.

Which of the Following Is Not a Reason for Negotiating