Supplier size does become a factor when one firm decides to leverage its purchases from one or a few suppliers.

Question

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When a firm decides to leverage its purchases from one or a few suppliers, it becomes more important for the suppliers to be able to meet the firm's demand and standards consistently. Larger suppliers may have an advantage in terms of production capacity and resources to meet these requirements. However, smaller suppliers may offer more personalized service and flexibility, so it ultimately depends on the specific needs of the firm.

Supplier Size Does Become a Factor When One Firm Decides