Final answer:
An organization may form long-term relationships with suppliers to achieve cost savings, supply chain reliability, and improved quality control, which are crucial for effective long-term expansion of production as demand grows.
Step-by-step explanation:
An organization might strive to form long-term relationships with a few dedicated suppliers for several reasons related to cost savings and operational efficiencies. Establishing strong, long-term relationships can lead to better pricing due to bulk purchasing or loyalty discounts. Additionally, long-term partnerships can enhance supply chain reliability, as dedicated suppliers are more likely to understand the purchasing organization's needs and prioritize them. Furthermore, a close relationship allows for just-in-time delivery, which reduces inventory costs and streamlines production.
These relationships can lead to improved quality control, as committed suppliers are more invested in maintaining a positive relationship. Over time, this can result in fewer defective goods and improved product quality. In the context of market expansion mentioned in the reference text, a secure supply chain supported by reliable suppliers ensures that a producer can expand production effectively as demand grows over the long term.