How the purchasing of capital equipment is different from the purchase of other routine supplies. The purchasing process: The purchasing process encompasses all the activities as shown below: Identification of user requirements. Evaluation of the user needs effectively and efficiently. Identification suppliers who are capable to meet the demand. Development of agreement with those suppliers. Development of the ordering mechanism. Ensure that the payment process occurs promptly. Ascertaining that the needs are effectively met and Driving continuous improvement.

Question

Using any business of choice, examine the stages of its purchasing cycle.This should be substantiated with practical examples.

Answer 1

Question

Chapter 2, Problem 13DQ

Summary Introduction

To explain: How the purchasing of capital equipment is different from the purchase of other routine supplies.

The purchasing process:

The purchasing process encompasses all the activities as shown below:

Identification of user requirements.

Evaluation of the user needs effectively and efficiently.

Identification suppliers who are capable to meet the demand.

Development of agreement with those suppliers.

Development of the ordering mechanism.

Ensure that the payment process occurs promptly.

Ascertaining that the needs are effectively met and

Driving continuous improvement.

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