Which of the following is NOT a way Lucas could demonstrate that relational exchanges would increase profits?
The option that is NOT a way that Lucas could demonstrate that relational exchanges would increase profits is Lucas's firm could get the lowest price on the key materials they needed.
Ways to Demonstrate that Relational Exchanges Increase Profits:
1. Lucas's firm could lower inventory costs with longer-term contracts with flexible deliveries: By establishing long-term contracts with vendors that allow for flexible deliveries, Lucas's firm can reduce the need for excess inventory. This would minimize storage costs and potential losses from obsolete or damaged goods.
2. Lucas's firm would not have to spend as much to test and examine inbound materials: By developing strong relationships with vendors, Lucas's firm can ensure consistent quality and reliability of inbound materials. This would reduce the need for extensive testing and examination, resulting in cost savings.
3. Lucas's firm could reduce purchasing costs through fewer searches and negotiations: Building strong relationships with vendors allows for better communication and understanding of each other's needs. This can lead to fewer searches for alternative suppliers and less time spent on negotiations.
4. Lucas's firm could get the lowest price on the key materials they needed: While getting the lowest price on key materials is generally beneficial for profitability, it is not necessarily a direct demonstration of the impact of relational exchanges. This option does not specifically address the importance of relationships with vendors and buyers in increasing profits. Therefore, NOT being able to get the lowest price on key materials is a way that Lucas could demonstrate that relational exchanges would increase profits.