Jake is running a tender exercise to find a new supplier for his manufacturing organisation. He is seeking fixed pricing for goods over the next 2 years. Which of the following are advantages of using fixed pricing? Select all that apply.
A.
fixed pricing means bidders will provide a lower quote
B.
fixed pricing makes forecasting easier
C.
fixed pricing simplifies the bidding process
D.
fixed pricing means Jake will benefit from decreases in price if the supplier's costs reduce
E.
fixed pricing is likely to lead to less tensions between the two parties in the long run
Fixed pricing makes forecasting easier, simplifies the bidding process, and can reduce tensions between the parties. It typically does not lead to lower quotes or share cost savings with the buyer.
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