The lowest purchase price of an item may be important in the short run for supply management but may cause increased costs somewhere else in the production system over the long run.

Question

Quizplus · Accepted Answer

This is because choosing the lowest purchase price may result in lower quality materials or a less reliable supplier, which can lead to production delays, quality issues, and increased costs in the long run. Therefore, it is important to consider not only the short-term costs but also the long-term impact when making purchasing decisions.

The Lowest Purchase Price of an Item May Be Important