Which of the Following Situations Does NOT Require the Purchasing

question 30

Multiple Choice

Which of the following situations does NOT require the purchasing agent to initiate a modified rebuy process?

• A) A supplier's products have a drop in quality
• B) The supplies system automatically reorders products
• C) The price of a usual product rises substantially
• D) A new and cheaper product becomes available to meet the same need

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Definitions:

Economic Order Quantity

A calculation used to determine the most cost-effective quantity of stock to order, balancing ordering costs with holding costs.

Total Ordering Costs

The sum of all expenses involved in placing an order, including logistic, administrative, and product costs.

Holding Costs

Expenses incurred from maintaining and storing inventory, such as warehousing costs, insurance, and deterioration losses.

Inventory Quantity

The total number of units of a specific product or category of products that are held in stock by a business at a given time.