1. Why do you look beyond the lowest price when choosing a supplier? What other factors need to be considered and why?
2. What are the primary goals of purchasing? How can purchasing achieve these goals?
3. Given the following information: Costs Make Option Buy Option Fixed Cost $125,000 $5,000 Variable Cost $15 $17 a) What is the break-even quantity? b) If the requirement is 150,000 units, is it more cost-effective for the firm to buy or make the components? c) What is the cost savings for choosing the cheaper option?