A Buyer Always Wants To

question 21

Multiple Choice

A buyer always wants to:

• A) buy for a price that is as high as possible, but never higher than his willingness to pay.
• B) buy for a price that is as low as possible, but never lower than his willingness to pay.
• C) buy for a price that is as low as possible, but never higher than his willingness to pay.
• D) buy for a price that is as high as possible, but never lower than his willingness to pay.

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Definitions:

Enterprise Resource Planning

Integrated management software systems that are used to collect, store, manage, and interpret data from various business activities, facilitating information sharing across the organization.

SCM

Supply Chain Management, the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Just-In-Time Production

A manufacturing methodology aimed at reducing inventory costs by producing goods only as they are needed in the production process or by the customer.

Inventory Replenishment

The process of adding stock to inventory to maintain desired levels and fulfill customer orders without delay.