Vendor Analysis

question 45

Multiple Choice

Vendor analysis:

• A) Has the sole objective of getting the lowest possible price on a particular product or service from the supplier.
• B) Does not take into account the behavioral needs of purchasing managers and others involved in the buying decision.
• C) Is a formal rating of suppliers on all relevant areas of performance.
• D) None of these alternatives about vendor analysis is correct.

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Definitions:

Paradox of Voting

A situation in which the cost of voting (time, effort) appears to outweigh the individual benefits, making it rational for people not to vote, yet people still vote.

Marginal Cost

The outlay involved in producing an extra unit of a product or service.

Marginal Benefit

The increased pleasure or benefit received from consuming an additional unit of a product or service.

Stadium

A large, often outdoor structure for sports, concerts, or other events, featuring tiers of seats for spectators.