A Major Cost in the Purchasing Function Is the Number

question 83

Multiple Choice

A major cost in the purchasing function is the number of purchase orders processed.One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price.The name of this technique is

• A)an EDI auction.
• B)a trading exchange.
• C)a reverse auction.
• D)a supplier consortium.

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Definitions:

Price Promotion

A marketing strategy that temporarily reduces the price of a product or service to stimulate consumer purchasing.

Low Demand

A situation where the desire and need for certain products or services are beneath expectations, often leading to surplus inventory and reduced sales.

Slow Period

Times of low activity or demand in a business or industry, often marked by reduced sales or production.

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the end user.