Which of the following is a reason to engage in bidding instead of negotiation?
A) When any of the five prerequisite criteria for competitive bidding are absent
B) When many variable factors bear not only on price but also on quality and service
C) When the supplier is not involved in the design process
D) When the business risks and costs cannot be predetermined
E) When a customer firm is contracting for a portion of the seller's production capacity

Question

Quizplus · Accepted Answer

Engaging in bidding instead of negotiation is often chosen when the supplier is not involved in the design process. This is because the specifications can be clearly defined and made standard for all bidders, making the process more straightforward and less subjective than negotiations might be.

Which of the Following Is a Reason to Engage in Bidding