Professional Documents
Culture Documents
procedures
2.Scheduled Purchasing
The process of buying the items that are in the
form of distributed deliveries according to the
delivery schedule provided by the buyer to the
supplier is termed as scheduled purchasing
Characteristics
Purchase order that covers annual requirements
of the company Is placed with the supplier.
3.Market purchasing
The purchasing of sufficient quantity of items
in advance when the price of these items are
low is termed as market purchasing
Characteristics
Purchases are made to cover production
requirements for a considerable period
Quantity of items purchased is generally large
The atmosphere is usually favorable for
negotiation
Purchases are made when the price is low.
4. Speculative purchasing
The process of buying large quantities of an item
when its price is low so that tentative profits can
be earned by selling them later at a higher price ,
is called speculative purchasing.
Characteristics
Seasonal purchasing
The process of buying an item as per its annual
requirements during its season is termed as
seasonal buying.
Items are purchased in a particular season only
Items are purchased in a small size but are
required in large quantity
Purchased at cheapest rates
Purchased directly from the producers of the goods
Group purchasing
The process of buying items of insignificant value in a
single purchase order is termed as group purchasing.
Items that are required in small quantities are divided
into some basic groups according to the source of
purchase
Items of every classified group will have fixed
inventory levels
For every group there is a purchase order that covers
various items that are present within the group
Stocks on hand are reviewed at regular intervals
If the stocks of some items have degraded as to the
recorder level, then replenishment action is taken for
those items.