All of the following are reasons for suppliers preferring long-term contracts except ____.
A) the supplier receives better scheduling information, which in turn helps the supplier's production area improve efficiency and materials planning
B) detailed projections of volumes and delivery dates allow the supplier to better budget the flow of funds and investment stemming from the expectation of continued future volume
C) the supplier's organization lowers unit costs because fixed costs are spread out over the term of the contract
D) the supplier can pay its workforce higher wages to increase its productivity
E) All of these choices.

Question

Quizplus · Accepted Answer

The supplier's ability to pay higher wages to increase productivity is not a reason for preferring long-term contracts. The other options are all valid reasons for preferring long-term contracts.

All of the Following Are Reasons for Suppliers Preferring Long-Term