BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681
BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681

Solutions

Chapter
Section
Chapter 11, Problem 1DQ
Textbook Problem

Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not?

Expert Solution
Summary Introduction

To determine: Why purchaser should evaluate the making cost of an item instead of evaluating the purchasing price.

Introduction: Supply management is the process of managing the suppliers and raw materials or resources that are essential for the organization’s operations.

Explanation of Solution

Determine why purchaser should evaluate the making cost of an item instead of evaluating the purchasing price:

The purchase should evaluate the making cost of an item to determine the fair and reasonable price of the item. Thus, he can avoid the fraudulent action of a shopkeeper. The making cost of the product helps the purchaser to determine the quality of the product. It is applicable for all manufacturing products.

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