A realistic independent estimate is important to a supply manager responsible for a major item of capital equipment because it is the basis for developing a realistic negotiating objective.

Question

Quizplus · Accepted Answer

An independent estimate provides an objective and unbiased assessment of the cost of the capital equipment, allowing the supply manager to develop a realistic negotiating objective that takes into account factors such as market trends, vendor capabilities, and the organization's budget constraints. Without a realistic independent estimate, the supply manager may set unrealistic negotiating objectives, which can lead to wasted time, resources, and ultimately, a less favorable outcome.

A Realistic Independent Estimate Is Important to a Supply Manager