Which View of Purchasing Is Described in the Following Statement??Management

question 50

Multiple Choice

Which view of purchasing is described in the following statement??Management becomes aware that pressing suppliers for low prices has its drawbacks and may lead to sub-optimization.

• A) Purchasing as an operational, administrative activity. 
• B) Purchasing as a commercial activity. 
• C) Purchasing as part of integrated logistics 
• D) Purchasing as a strategic business area.

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Definitions:

EOQ Model

Economic Order Quantity Model, an inventory management tool used to determine the optimal order size that minimizes total inventory costs including holding and ordering costs.

SKUs

Stock Keeping Units, a unique identifier for each distinct product and service that can be purchased.

Inventory Management

The supervision of non-capitalized assets and stock items, focusing on ordering, storing, and using a company's inventory.

Consumer Packaged Goods

Products that are sold in packaged form to consumers, typically involving items that are consumed daily and purchased frequently.