The Procurement Process for Both Direct and Indirect Materials Should

question 18

Multiple Choice

The procurement process for both direct and indirect materials should work on

• A)improving coordination and visibility with the supplier.
• B)decreasing the transaction cost for each order.
• C)consolidation of orders to take advantage of economies of scale and quantity discounts.
• D)minimizing communication with the supplier.

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Definitions:

Grade

A classification system used in education to evaluate or rank students' performance, typically represented by letters (A, B, C, etc.) or numbers.

Hours

A unit of time equal to 60 minutes or 3600 seconds.

Volume

The amount of space that a substance or object occupies, or that is enclosed within a container.

Price

The amount of money expected, required, or given in payment for something; it reflects the value at which a transaction can occur.