Which of the following procurement strategies would be most appropriate for items required by a bottleneck operation?

Question

Quizplus · Accepted Answer

Long-term contracts would be the most appropriate procurement strategy for items required by a bottleneck operation because they ensure a stable supply of goods and reduce the risk of stock-outs, which could seriously hinder the operation's productivity. This strategy would also provide the operation with greater leverage in negotiations with suppliers, as they would be more inclined to offer favorable terms and pricing in exchange for a long-term commitment.

Which of the Following Procurement Strategies Would Be Most Appropriate