This topic contains a solution. Click here to go to the answer

Author Question: For the buyer, the total procurement price is more than just the basic purchase price. There are ... (Read 136 times)

awywial

  • Hero Member
  • *****
  • Posts: 577
For the buyer, the total procurement price is more than just the basic purchase price. There are other elements to consider. Name these elements, and discuss the primary considerations of each.

Question 2

ABC Company is having trouble keeping merchandise in stock because its suppliers are unreliable. ABC needs to deal with its
 a. channel members.
  b. supply chain management.
  c. customer distribution route.
  d. downstream partners.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

leeeep

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

 Traditional Basic Input Costs This is the primary price of the product or materials as paid by the firm. It is the traditional price buyers seek through bidding, through negotiating, or in requests for quotes.

 Direct Transaction Costs These are the costs of detecting, transmitting the need for, and processing the material flow in order to acquire the goods. The use of blanket or systems contracting can also reduce transaction costs. These include direct ordering by users to suppliers, single consolidated billing, and user inspection and checking.

 Supplier Relational Costs These are the costs of creating and maintaining a relationship with a supplier. They include travel, supplier education, and the establishment of planning and operational links between purchasing and the supplier's order-entry operation, as well as other links, including those related to traffic, engineering, research, and product development in both firms.

 Landed Costs The inbound transportation flow includes two key cost elements: the actual transportation cost and the sales/FOB terms. There are four different transportation options with inbound movements  supplier-selected for-hire carrier or private carrier and buyer-selected for-hire carrier or private carrier.

 Quality Costs/Factors Quality pertains to the conformance of goods to a desired specification. It includes the cost of conformance, nonconformance, appraisal, and ultimate use costs.

Answer to Question 2

b




awywial

  • Member
  • Posts: 577
Reply 2 on: Jun 28, 2018
Wow, this really help


bulacsom

  • Member
  • Posts: 329
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

For a complete list of videos, visit our video library