PRICE

1. #Ways to eliminate the negative effort

1.1. 1-Legal action is possible 2-Seek new source of supplier whether inside or outside the area 3- using substitute materials 4- Reject all the bids and try to negotiate with one supplier to reduce the price

2. if any of these conditions is absent then Negotiations is preferred method of the price

3. Competitive Bidding

3.1. there must be several , reliable and qaulified

3.2. Bidders must not be too numerous

3.3. Enough time is avaliable

3.4. The item value must be large

3.5. The suppliers must want the business

3.6. The specifications must be clear

3.7. there must be honest bidding and absence of collusion

3.8. proper treatment quotation

4. Collusive bidding

4.1. #Definition

4.1.1. An illegal agreement and coordination between suppliers involved in the bidding process , A buyer may rejects all the bids if the spplier are acting in collusion

5. #Advantages

5.1. its the fairest possible means of treating all suppliers alike

5.2. stress quality and serive

5.3. Assuming that bids are solicited only from honest and dependable suppliers

5.4. it saves time

6. Firm Bidding

6.1. #Definition

6.1.1. most organizations have policy of notifying the suppliers that original bids must be FINAL and that revisions will not be permitted under any circumstances.