The benefits of long-term relationships with a small number of suppliers include all of the following except
A) Always getting the lowest price
B) Focus on improving process controls
C) Greater accountability
D) Develop stable delivery schedules
E) Eliminate paperwork

Question

Quizplus · Accepted Answer

Although long-term relationships with a small number of suppliers can result in many benefits, such as greater accountability, stable delivery schedules, and a focus on improving process controls, always getting the lowest price is not one of them. Prices are subject to market fluctuations and other factors that are often outside of the control of suppliers. Therefore, it is not possible for any supplier to always offer the lowest price, regardless of the length of the relationship. Eliminating paperwork may also be a benefit, but it is not mentioned as one of the options in this question.

The Benefits of Long-Term Relationships with a Small Number of Suppliers