Asked by Angelique Cobilla on Jul 13, 2024
Verified
Online reverse auctions are best suited for situations where:
A) specifications are clearly defined.
B) there is a competitive supply market with qualified suppliers willing to participate.
C) the buyer is prepared to switch suppliers if necessary.
D) specifications are clearly defined and there is a competitive supply market with qualified suppliers will to participate.
E) specifications are clearly defined,there is a competitive supply market with qualified suppliers willing to participate,and the buyer is prepared to switch suppliers if necessary.
Online Reverse Auctions
Digital marketplaces where suppliers bid to sell their goods or services to a buyer, with prices typically decreasing over time, often used to enhance competitiveness and reduce costs.
Competitive Supply Market
Refers to a market environment where multiple suppliers are competing to offer products or services, usually driving down prices and increasing quality.
Switch Suppliers
The process of changing from one supplier to another to improve service, reduce costs, or gain other advantages.
- Grasp the concepts of online reverse auctions, Pareto analysis, and the global consolidation of sourcing strategies.
Verified Answer
AG
Amanda GoldingJul 17, 2024
Final Answer :
E
Explanation :
Online reverse auctions are best suited for situations where the specifications are clearly defined, there is a competitive supply market with qualified suppliers willing to participate, and the buyer is prepared to switch suppliers if necessary. Such auctions help in leveraging the competition and getting the best value for the money spent. Hence, all three conditions should be met for online reverse auctions to be successful.
Learning Objectives
- Grasp the concepts of online reverse auctions, Pareto analysis, and the global consolidation of sourcing strategies.