If a Customer Has Stated the Budget in the RFP

question 23

True/False

If a customer has stated the budget in the RFP, the customer might reject proposals that have cost estimates greater than the budget without further review of the proposal.

---

Definitions:

Production Capacity

The maximum output that a manufacturing facility can produce under normal conditions, determined by available resources and constraints.

Overbooking Decision

A strategic choice made by companies, especially in hospitality and transportation, to sell more units than are available, based on anticipated cancellations.

Supply Chain

The network of all businesses involved in creating and distributing a product, from raw materials to finished goods delivered to the customer.

Capacity Shortage

A situation where the demand for a product or service exceeds the production capacity of the facilities designed to supply it.