Essay on Why Purchasing Is The First Phase Of Materials Management
The purchased items should be of specified quality in desired quantity available at the prescribed time at a competitive price. In the words of Alford and Beatty, ”Purchasing is the procuring of materials, supplies, machines, tools and services required for equipment, maintenance, and operation of a manufacturing plant
The elements of the purchasing cycle .
1- Identify and Define The Need :The Needs of purchasing have 3 elements ( 1-Purchase requisition: an internal document completed by a user that informs purchasing of a specific need 2-REcorder Point System : A method used to initiate the purchase of routine items typically, each item has predetermined order point and order qanitiy 3-Statement Of Work/Scope Of Work : Terms and conditions for a purchased service, includes how supplier will be evaluted ) mainly the need arises in the inventory store when it decreases to a certain level. Today we have computer information systems in place to prevent urgent orders being made. MRS = materials requirements planning system is used for info on size, specifics of need and schedules…