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What other factors besides price should be considered before changing your purchasing procedures?

What other factors besides price should be considered before changing your purchasing procedures?

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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What other factors besides price should be considered before changing your purchasing procedures?

Suppose you are the purchasing manager for a company that manufactures scanners and other computer peripherals. Your vendor for scanner motors is now offering "quantity discounts" in the form of instant rebates and lower shipping charges as follows. Quantity 1-500 motors 501-1,000 motors 1,001-2,000 motors Net Price $16 501-1,000 motors 15.70 1,001-2,000 motors $ 14.80 16 16 Rebate none $1.40 2.00 Shipping $1.50 1.10 0.80 (a) Calculate the cost of the motors, including shipping charges, for each category (in $). 1-500 motors $17.50 (b) If you usually purchase 400 motors per month, what percent would be saved per motor by ordering 800 every two months? Round to th nearest tenth of a percent. 10.29 % (c) What percent would be saved per motor by ordering 1,200 every three months? Round to the nearest tenth of a percent. 15.43 % (d) How much money (in $) can be saved in a year by purchasing the motors every three months instead of every month? $ (e) What other factors besides price should be considered before changing your purchasing procedures?
Transcribed Image Text:Suppose you are the purchasing manager for a company that manufactures scanners and other computer peripherals. Your vendor for scanner motors is now offering "quantity discounts" in the form of instant rebates and lower shipping charges as follows. Quantity 1-500 motors 501-1,000 motors 1,001-2,000 motors Net Price $16 501-1,000 motors 15.70 1,001-2,000 motors $ 14.80 16 16 Rebate none $1.40 2.00 Shipping $1.50 1.10 0.80 (a) Calculate the cost of the motors, including shipping charges, for each category (in $). 1-500 motors $17.50 (b) If you usually purchase 400 motors per month, what percent would be saved per motor by ordering 800 every two months? Round to th nearest tenth of a percent. 10.29 % (c) What percent would be saved per motor by ordering 1,200 every three months? Round to the nearest tenth of a percent. 15.43 % (d) How much money (in $) can be saved in a year by purchasing the motors every three months instead of every month? $ (e) What other factors besides price should be considered before changing your purchasing procedures?
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