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1. Which of the following is not one of the conditions demanding negotiation?
A. Impossible to estimate costs with a high degree of certainty B. Price is not the only important variable C. Market must consist of an adequate number of sellers D. Purchasing firm anticipates a need to make changes in the specification E. Special tooling of setup costs are major factors
2. If a supplier is unlikely to meet future requirements, the buying firm has several alternatives. Which is typically not one of the alternatives?
A. Assist with financing to help the supplier meet future requirements B. Negotiate a better price with the supplier for the current contract C. Assist with technological assistance to help the supplier meet future requirements D. Develop new sources to replace the supplier E. Develop the capability internally to replace the supplier
Additional Requirement
These multiple choice problems belong to Operations Management.
The first problem is about conditions demanding negotiations.
The Second problem is about not an alternative for a buying firm.
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