Page 318 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management Sukhpreet Kaur, Lovely Professional University

Notes Unit 14: Purchasing

CONTENTS
Objectives
Introduction

14.1 Purchasing Interfaces
14.2 Purchasing Cycle
14.2.1 Defining Specifications

14.2.2 Developing Criteria for Supplier Selection
14.2.3 Classifying Suppliers
14.2.4 Evaluating the Make or Buy Decision
14.2.5 Expediting and Follow-up
14.2.6 Procurement Cycle

14.3 Value Analysis
14.3.1 Value Analysis Method
14.3.2 Value Analysis Process

14.3.3 Importance of Value Analysis
14.4 Centralized vs Decentralized Purchasing
14.5 Ethics in Purchasing
14.6 Summary
14.7 Keywords

14.8 Self Assessment
14.9 Review Questions
14.10 Further Readings

Objectives

After studying this unit, you will be able to:
Explain purchasing interfaces
Discuss the purchasing cycles
Describe value analysis
State centralized vs. decentralized purchasing

Explain ethics in purchasing

Introduction

Purchasing is responsible for obtaining the materials, parts and supplies and services needed to
produce a product or provide a service.

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