3.2 The Role Of Procurement Flashcards
1
Q
Just-in-case (JIC) production
A
Holds stock just in case there is a delay from suppliers or a sudden unexpected increase in demand.
2
Q
Purchasing economies of scale
A
Occur when the cost per unit falls if large orders are placed with suppliers due to a bulk discount.
3
Q
Procurement
A
Involves selecting suppliers,establishing the terms of payment and negotiating the contract.
4
Q
The supply chain
A
Refers to all the businesses people and activities that take part in the production processes from the start until it gets to the customers
5
Q
Logistics
A
Refers to the movement of goods,services,information and money throughout the production process.
