Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9781259580093
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 15, Problem 17DRQ
Summary Introduction

To determine: Advantages of centralization versus decentralization in purchasing.

Introduction: Organizations that are having numerous manufacturing centers which are arranged at inaccessible spots, it might be a critical issue to select whether to purchase for all the manufacturing centers.  There should be just a single purchase division for every manufacturing centre, and there must be one buying centre. Hierarchical situation of the acquiring capacity and also the level of centralization is a key choice.

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