TAILIEUCHUNG - Lecture Business marketing: Connecting strategy, relationships, and learning (4/e): Chapter 3 - Dwyer, Tanner

Chapter 3 - The purchasing function. This chapter includes contents: The purchasing department’s function, purchase price vs. total cost, methods to examine and compare costs, total cost of ownership of a tangible product, using value analysis, steps in the buying process, vendor analysis ratings,. | McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 3 The Purchasing Function THE PURCHASING DEPARTMENT’S FUNCTION IS TO: PROVIDE APPROPRIATE LEVELS OF SUPPLY AT THE APPROPRIATE LEVEL OF QUALITY FOR THE LOWEST TOTAL COST 3- PURCHASE PRICE Vs. TOTAL COST PURCHASE PRICE = THE DOLLAR VALUE PAID TOTAL COST = PURCHASE PRICE + DELIVERY + STORAGE + SERVICE 3- METHODS TO EXAMINE AND COMPARE COSTS TOTAL COST OF OWNERSHIP ECONOMIC ORDER QUANTITY (EOQ) VALUE ANALYSIS 3- TOTAL COST OF OWNERSHIP OF A TANGIBLE PRODUCT TOTAL COST OF OWNERSHIP = PRODUCT PRICE + DELIVERY + INSTALLATION + MAINTENANCE / REPAIR + POWER COSTS + SUPPLY COSTS + OPERATING COSTS + FINANCING 3- ECONOMIC ORDER QUANTITY THE QUANTITY THAT MINIMIZES ORDERING COSTS AND STORING COSTS 3- USING VALUE ANALYSIS THE OBJECTIVES OF VALUE ANALYSIS: REDUCE COSTS AND/OR IMPROVE DESIGN What is New Currently Alternatives Being Done Being Considered COMPARE BENEFITS RECEIVED .

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