Which of the following is a reason to engage in bidding instead of negotiation?
A) When tooling and setup costs represent a small percentage of the supplier's total costs
B) When a long period of time is required to produce the items purchased
C) When production is interrupted frequently because of numerous change orders
D) When a thorough analysis is required to solve a difficult make-or-buy decision
E) When the products of a specific supplier are desired to the exclusion of others

Question

Quizplus · Accepted Answer

Bidding is often preferred when tooling and setup costs are a small percentage of the supplier's total costs because it suggests that the production process is relatively standardized, making it easier to compare bids from multiple suppliers on a cost basis.

Which of the Following Is a Reason to Engage in Bidding