Page 42 - DMGT525_MATERIALS_MANAGEMENT

Neha Khosla, Lovely Professional University
Unit 4: Purchasing Management

Unit 4: Purchasing Management Notes

CONTENTS
Objectives
Introduction

4.1 Meaning of Purchase Management
4.2 Objectives of Scientific Purchasing
4.3 Functions of Purchasing Department

4.3.1 Responsibilities of the Purchase Department
4.3.2 Duties of Purchasing Department
4.4 Purchase Parameters – Eight Rs of Purchasing
4.5 Kardex System
4.6 Purchasing Policy and Procedure

4.6.1 Authorities Competent to Purchase Goods and their Purchase Powers
4.6.2 Purchase through a Central Purchase Organization
4.6.3 Approval of the Competent Authority to the Purchase

4.6.4 Purchase of Goods without Quotation
4.6.5 Purchase of Goods by Purchase Committee
4.6.6 Purchase of Rate Contracted Goods
4.6.7 E-Procurement
4.7 Purchase of High Capital Equipment

4.7.1 Information to be Submitted as Part of the PR Package
4.8 Summary
4.9 Keywords

4.10 Review Questions
4.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the Meaning and Objectives of Purchasing Management

 Discuss the Functions of Purchase Department
 Explain the Purchase Policy and Procedure
 Discuss the Purchase of high Capital Equipment

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