3.2 The Role Of Procurement

Question 1

Jic production

Answer 1

Hold stocks just in case there is a delay from supplies or a sudden unexpected increase in demand

Question 2

Purchasing economies of scale

Answer 2

Occurs when the cost per unit falls if large orders are placed with suppliers due to a bulk discount

Question 3

Procurement

Answer 3

Involves selecting suppliers,establishing the terms of payment and negotiating the contract

Question 4

Supply chain

Answer 4

Refers to all the businesses,people and activities that take part in the production processes from the start until it gets to the customer

Question 5

Logistics

Answer 5

Refers to the movement of goods,services,information and money throughout the production process.