I need help answering this question for my Strategic Sourcing and Supply Management: 1- You are thinking of entering into an agreement with a

I need help answering this question for my Strategic Sourcing and Supply Management:

1- You are thinking of entering into an agreement with a supplier for a product, which though quite simple to produce, is needed for your operations. You have heard that it is quite likely that costs will increase for this product. 

A. What type of contract would you recommend? 

B. What other measures would you include in this contract? Be sure to also specify whether it would be a long term or short term contract. 

C. Give the rationale for your decision.