Answer to Question 1
The just-in-time (JIT) purchasing system allows the purchaser to make a long-term commitment with a vendor. Frequent product deliveries, often just the amount required for the next day, are used. Close cooperation between purchaser and vendor is needed. Potential advantages include a reduced need for on-site storage, improved vendor relationships, less need for numerous vendors, and reduced spoilage. There are also fewer theft problems, and less money is tied up in inventory.
In a vendor-managed inventory system, the vendor retains ownership of products in inventory until they are issued. This can result in better service and improved cash flow.
Answer to Question 2
There are different purchasing methods, and selecting a particular method depends on the size and type of an organization and the intended use of a product. For example, the competitive bidding method is the most appropriate method for small independent operations. On the other hand, chains prefer the cost-plus purchasing method. The commissary method works best for franchised chains, whereas for perishable items such as dairy and fresh seafood, operations use the standing order method.
Research Methods
A medical assistant listening to the patient and physician discuss the patient's care.
Methods for Parenteral Administration of Drugs
Selected Natural Products
The impact of endocrine disruptor on animal
Identify the variable representing each described quantity in the equation