Page 75 - DMGT525_MATERIALS_MANAGEMENT

Materials Management

Notes Request for Proposal (RFQ): A request for proposal (RFP) is a solicitation made, often through
a bidding process, by an agency or company interested in procurement of a commodity, service
or valuable asset, to potential suppliers to submit business proposals.
Agreement: A negotiated and typically legally binding arrangement between parties as to a
course of action.

Contract: A written or spoken agreement, especially one concerning employment, sales, or
tenancy that is intended to be enforceable by law.
Meeting: Formal or informal deliberative assembly of individuals called to debate certain issues
and problems, and to take decisions.
Bid: An offer made by an investor, a trader or a dealer to buy a product or service.
Persuade: It means to induce to undertake a course of action or embrace a point of view by
means of argument or reasoning.

5.10 Review Questions

1. Define negotiation.
2. “Negotiation is essentially a communication”. Comment on this statement.

3. What are the objectives of negotiation?
4. What is the difference between negotiating and begging?
5. What role does body language play in negotiation?

6. What is the role of a negotiator in the task of negotiation?
7. What are the good qualities possessed by a negotiator?
8. What is the difference between tactics and strategies of negotiation?
9. Discuss the factors influencing tactics of negotiation?
10. What are the phases of negotiation.

Answers: Self Assessment

1. Negotiation 2. Contract
3. Bargaining 4. Parties
5. Production 6. Begging
7. Transparency 8. Offensive, defensive

9. Patience 10. Materials
11. Thinking 12. Action
13. Tactics 14. Meeting
15. Executive 16. Negotiations

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