Basics of purchasing management


Question 1: Describe why organizations source internationally.

Question 2: Describe the merits and demerits of purchasing used equipment.

Question 3: Describe the concept of life cycle costing.

Question 4: Describe the elements of efficient negotiation by a purchasing manager.

Question 5: Why might prices differ between suppliers?

Question 6:

a) What are wholesalers?
b) What are the functions of wholesalers?

Question 7: What factors will an organization take into account in a ‘make or buy’ decision?

Question 8: What would you expect to see in a well-prepared purchasing manual?

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