Flashcards
PURCHASING MANAGEMENT EXAM JUNE 18 _2
Cards in this deck (7)
- 1DEFINE STANDARDISATIONDEVELOPING & AGREEING ON UNIFORM, TECHNICAL PRODUCT SPECIFICATIONS & SERVICES
- 2ADVANTAGES OF STANDARDISATION - 61. LESS STOCK = LESS CARRYING COST
2. LARGER QUANTITIES - NEGOTIATE PRICE
3. ELIMINATE INSPECTION & CONTROL
4. LESS MISTAKES
5. REDUCE COST OF FINAL PRODUCT
6. ITEMS MORE READILY AVAILABLE - 3NAME 14 SUPPLIER SELECTION (ASSESSMENT) CRITERIA1. QUALITY ACCREDITATION
2. PRICE & COST STRUCTURE
3. DELIVERY
4. TIME
5. FLEXIBILITY
6. SERVICE
7. FINANCIAL STATUS
8. SYSTEMS (OPC)
9. TECHNOLOGY & PROCESS CAPABILITY
11. ENVIRONMENTAL ISSUES, ETHICS, SOCIAL RESP
12. BBBEE
13. CAPABILITIES, RESPONSIVENESS, MOTIVATION
14. GEOGRAPHIC LOCATION - 4NAME 5 TYPES OF INVENTORY1. PRODUCTION INVENTORIES (RAW MATERIALS)
2. MAINTENANCE, REPAIR, OPERATIONS INVT
3. PROCESSING INVT (SEMI-FINISH PRODUCT)
4. PACKAGING MATERIAL
5. FINAL PRODUCTS INVT - 5NAME & DISCUSS 2 OF 6 MARKET DRIVEN PRICING STRATEGIES (SUPPLIER PRICING MODELS)1. PRICE VOLUME MODEL: PRICE & VOLUME TO MAX PROFIT. MORE VOLUME = LESS COST = MORE SALES
2. MARKET PENETRATION MODEL: FIXED PRICE LOW. BEAT COMP. LONG RUN INCREASE PRICE & MAX PROFIT - 6NAME & DISCUSS 2 OF 6 MARKET DRIVEN PRICING STRATEGIES (SUPPLIER PRICING MODELS3.MARKET SKIMMING MODEL: HIGHEST PROFIT QUICKLY. SELL QUICKLY BEFORE COMP STARTS
4. REVENUE PRICING MODEL: ONLY COVER COST. KEEP SKILLED LABOUR & IMPROVE CAPACITY WHEN ECONOMY BAD - 7NAME & DISCUSS 2 OF 6 MARKET DRIVEN PRICING STRATEGIES (SUPPLIER PRICING MODELS5. PROMOTIONAL PRICING MODEL: GOOD PRICE FOR 1 PRODUCT - BOOST PRODUCT LINE
6. MARKET PRICE LEVEL: GET HIGHEST PRICE, BUT LOWER THAN COMP. OFFER EXTRAS (DELIVERY)
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- Flashcards on PURCHASING MANAGEMENT EXAM JUNE 18 _2, created by Toni-Lee Farrell on 25/04/2019.
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- Toni-Lee Farrell
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