Bpp learning Media is an acca approved Content Provider

Supplier management
. Locating suppliers and dealing with them (eg discussing prices, 
discounts, delivery lead times, specifications; chasing late deliveries; sanctioning payments). 
(f) 
Evaluating purchasing alternatives
. Obtaining information on availability, quality, prices, 
distribution and suppliers for the evaluation of purchasing alternatives. 
(g) 
Ensuring co-ordination between purchasing and inventory control
. Ensuring appropriate levels of 
inventory.
1.2.2 The purchasing mix 
The purchasing manager has to obtain the best purchasing mix. 

Quantity 

Price 

Quality 

Delivery 
(a)
 Quantity
. The size and timing of purchase orders will be dictated by the balance between two 
things. 
(i) 
Delays in production caused by insufficient inventory 
(ii) 
Costs of holding inventory: tied up capital, storage space, deterioration, insurance, risk of 
pilferage 
A system of inventory control will set 
optimum reorder levels 
(the inventory level at which 
supplies must be replenished so as to arrive in time to meet demand) to ensure 
economic order 
quantities
 
(EOQ) are obtained for individual inventory items. 
(b)
 Quality
. The production department will need to be consulted about the quality of goods required 
for the manufacturing process, and the marketing department about the quality of goods 
acceptable to customers. Purchased components might be an important constituent of product 
quality. 
(c)
 Price
.
Favourable short-term trends in prices may influence the buying decision, but purchasing 
should have an eye to the best 
value
over a period of time – considering quality, delivery, urgency 
of order, inventory-holding requirements, and so on. 
(d)