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 19, Problem 1DQ
Textbook Problem

What is a purchasing performance measurement and evaluation system? Why would a firm want to measure purchasing performance?

Expert Solution
Summary Introduction

To determine: Performance and evaluation system and reason why a firm need to measure performance measurements?

Explanation of Solution

Performance and evaluation system:

It is a formal and systematic methodology to observe and assess the purchasing performance. Every process has a standard value or target with which it is compared to analyze its performance and evaluate the system efficiency.

Reason why firm need to measure performance measurements:

There are numerous reasons a company is interested in measuring its performance. One of the commonly quoted reason is to improve the performance standards and prevent it from decreasing beyond a certain point.

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