Which one of the following statements is TRUE?

Question

Quizplus · Accepted Answer

Long-term contracts are a way for a buying firm to establish a cooperative relationship with a supplier. This enables the supplier to plan for future demand and invest in production capacity, which can lead to lower prices and better quality for the buyer over time. A competitive orientation for a standard item with high demand may lead to a bidding war that drives up prices, while single sourcing can increase the risk of supply chain disruptions if the sole supplier encounters problems. The idea that the buyer always wins in a competitive orientation is also not true, as it can lead to short-term thinking and a focus on price over quality or innovation.

Which One of the Following Statements Is TRUE