4. ____ is the task of buying goods of right quality, in the right quantities, at the right time and at the right price. (A) Supplying (B) Purchasing (C) Scrutinizing (D) None of the above
Answer (1)
The correct answer to the question is (B) Purchasing.
Purchasing is the business activity involving the acquisition of goods and services that a company needs to carry out its operations. It is a critical function within a business and ensures that necessary resources are obtained efficiently and economically.
Let's break down the aspects of the purchasing process:
Right Quality : Ensuring that the goods or services meet the pre-determined standards or specifications required by the business.
Right Quantity : Buying the appropriate amount of goods, avoiding both excess and shortage.
Right Time : Acquiring goods at a time when they are needed to avoid stockouts or unnecessary inventory holding.
Right Price : Negotiating and securing goods at a competitive rate that aligns with the business's budget constraints.
Purchasing is an essential part of supply chain management and involves various activities like market research, supplier selection, and negotiation. By effectively managing the purchasing process, businesses can optimize their supply chain efficiency and overall performance.
