Final answer:
Close buyer-seller relationships may not make sense due to reduced flexibility and varying importance of purchases, along with suppliers' preferences and potential cost advantages for the buyer.
Step-by-step explanation:
Close buyer-seller relationships may not make sense because:
- Flexibility may be reduced for the firms involved.
- Not all purchases are important enough to the buyer to justify a close relationship with a supplier.
- Some suppliers do not want to deal with buyers who place small orders.
- There are situations in which the buyer could get reduced prices by letting suppliers compete for the buyer's business.
- All these answers are correct.
Close buyer-seller relationships may limit a firm's flexibility and ability to explore other options. Additionally, not all purchases require a close relationship, especially if they are not significant to the buyer. Some suppliers may also choose not to deal with buyers who only place small orders. Lastly, in certain situations, buyers may benefit from getting reduced prices by allowing suppliers to compete for their business.