purchasing
Definition
Management control point where all significant purchases are monitored for the right authorization of the right item, at the right price, quality, and quantity, from the right supplier at the right terms, and at the right time. Its major objectives are to (1) maintain the quality and value the firm's products, (2) minimize cash tied-up in inventory, (3) maintain the flow of inputs to maintain the flow of outputs, and (4) strengthen the firm's competitive position. Purchasing may also involve (a) development and review of the product specifications, (b) receipt and processing of requisitions, (c) advertising for bids, (d) bid evaluation, (e) award of supply contracts, (f) inspection of good received, and (g) their appropriate storage and release.
purchasing is in the Accounting & Auditing, Banking, Commerce & Finance, Entrepreneurship, Management, & Leadership and Purchasing & Procurement subjects.
purchasing appears in the definitions of the following terms:
purchasing agent,
asset-liability matching,
passive contract,
consumer control point,
prohibit,
buying on margin,
purchase requisition,
competitive quotations,
self insurance,
distributed network model
and
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