3.2 The role of procurement Flashcards
(7 cards)
1
Q
Factors affecting the choice of suppliers
A
Price, quality & reliability
2
Q
Procurement
A
Process of dealing with suppliers, e.g. selection, terms of payment, negotiating contract
3
Q
Types of stock
A
Day-to-day supplies and raw materials
4
Q
Opportunity cost
A
The sacrifice we make when we choose to do anything
5
Q
What things will businesses buy from suppliers?
A
- General necessities e.g. electricity
- Materials for producing products
- Purchases to create goods e.g. machinery
6
Q
Supply chain
A
All the businesses and people that take part in the production process from the start until the product gets to the customer
7
Q
Logistics
A
Movement of goods, services, information and money throughout the production process, ensures everything is in the right place
