Flashcards
PURCHASING EXAM PREP NOV 2018
Cards in this deck (5)
- 1VALUE OF CONDUCTING A COST ANALYSIS1. DETAILED VIEW OF PRODUCER'S COST
2. BEST VALUE FOR BEST PRICE
3. SAVING ON COST CAN INCREASE PROFIT
4. NEGOTIATE - 29 CIRCUMSTANCES - CONCENTRATION OF PURCHASES BY ONE SUPPLER IS BENEFICIAL1. LONG TERM RELATIONSHIP & CONTRACT
2. SUPPLIER PATENT RIGHTS
3. OUTSTANDING QUALITY
4. ORDER TOO SMALL FOR MORE SUP
5. BIGGER DISCOUNT & LOWER TRANSPORT
6. STOCKLESS/JIT SYSTEM
7. ELECTRONIC DATA INTERCHANGE
8. OBVIOUS SUPPLY STRATEGY
9. SUPPLY MANAGEMENT APPROACH IS FOLLOWED - 34 REASONS WHY USING MORE THAN ONE SUPPLIER IS BENEFITIAL1. REDUCES RISK OF DISRUPTIONS
2. SPECIALISE IN PRODUCT & SUPPORT FROM OTHER
3. SUPPORT SMALL BUSINESS
4. IF ONE SUP NOT SUFFICIENT CAPACITY - 46 ADVANTAGES OF STANDARDISATION SAVING COST1. LESS STOCK = LESS CARRYING COST
2. LARGER QUANTITIES - NEGOTIATE BETTER COST FOR BULK ORDER
3. ELIMINATE INSPECTION & CONTROL
4. POSSIBILITY OF MISTAKES ARE LESS
5. REDUCE COST OF FINAL PRODUCT - ORG MORE COMPETITIVE
6. ITEMS MORE READILY AVAILABLE - 55 CIRCUMSTANCES UNDER WHICH P & S WILL USE STANRDISATION DURING DECISION MAKING1. EXPERIENCING SEVERE PRICE COMPETITION / INFLATION - BETTER TO CUT BACK ON COSTS
2. DEMAND FOR ITEM MAY DECREASE. DON'T WANT TO HOLD NON-STANDARD ITEMS
3. DOUBT ABOUT SUPPLIER QUALITY
4. WHEN EMPLOYEES ARE NOT TECHNICALLY SKILLED
5. SHORTAGE OF FUNDS (LESS STOCK IS BETTER)
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- Flashcards on PURCHASING EXAM PREP NOV 2018, created by Toni-Lee Farrell on 02/05/2019.
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- Toni-Lee Farrell
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