The role of procurement 3.2

Question 1

What is just-in-case production(JIC)

Answer 1

Just-in-case production holds stocks just in case there is a delay from suppliers or a sudden unexpected increase in demand.

Question 2

When does purchasing economies of scale take place

Answer 2

Purchasing economies of scale takes place when the cost per unit falls off large orders are placed with suppliers due to a bulk discount.

Question 3

Procurement

Answer 3

Procurement involves selecting suppliers, establishing the terms of payment and negotiating the contract.

Question 4

Supply chain

Answer 4

The supply chain 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

Logistics refers to the movement of goods, services, information and money throughout the production process