Question: There are various types of supplier contracts that the company can use and each contract comes with its advantages and disadvantages. Type of contract: Fixed

There are various types of supplier contracts that the company can use and each contract comes with its advantages and disadvantages.

Type of contract:

  1. Fixed price
  2. Cost plus fixed fee
  3. Fixed price incentive
  4. Buyback
  5. Quantity flexibility
  6. Revenue sharing

Appraise each supplier contract's advantages and disadvantages as stated above and suggest the best supplier contract from your standpoint. Provide justification for your answer with example.

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