You work for a company that manufactures a specialty line of commercial shelving suitable for retail displays. Your manufacturing costs have been rising steadily, and you have been negotiating with a new supplier for a key component of the shelving units. The supplier's latest offer is to supply the component for a fixed price if your company commits to a minimum monthly purchase for a period of 12 months.
a. What are the risks associated with taking time to consider the offer before accepting it?
b. What can your business do to ensure that the offer remains open while you take time to consider whether to accept it?
c. What happens if your company responds by agreeing to a six-month commitment?
d. If the supplier specifies a deadline for acceptance, can he the supplier cancel the offer ahead of time? (0.5 marks)

Answer rating: 100% (QA)

a Risks Associated with Taking Time to Consider the Offer 1 Price Fluctuations The cost of the compo... View the full answer