GM typically solicits bids from global suppliers to produce a particular component and awards a 1-year contract to the supplier that submits the lowest bid.At the end of the year,a contract is once again put out for competitive bid,and once again the lowest cost supplier is most likely to win the bid.GM is using which of the following?
A) Strategic outsourcing
B) Competitive bidding
C) Long-term contracting
D) Strategic alliance
E) Hostage taking

Question

Quizplus · Accepted Answer

GM is using the process of competitive bidding to obtain the lowest price from suppliers for a particular component. This process involves soliciting bids from different suppliers and awarding the contract to the one who submits the lowest bid. This approach allows GM to keep the costs low while maintaining the quality of the product.

GM Typically Solicits Bids from Global Suppliers to Produce a Particular