Explain which factors should be considered when deciding the quantity of a product to order.
Answer(s): A
When reviewing supplier's response the procurement professional should consider the right quantity of product or service that has to be ordered at anytime as against the price to decide how to gain the best cost.Factors to consider include the following(1)Cost of inventory(2) cost of insurance(3) cost of transportation.Refer to the question column for response
When reviewing supplier's response the procurement professional should consider the right quantity of product or service that has to be ordered at anytime as against the price to decide how to gain the best cost.Factors to consider include the following(1)Cost of inventory(2) cost of insurance(3) cost of transportation.These three should be considered against price.Note: Incoterms are versatile and procurement professionals should understand how they are ap- plied and what point the risk transfers from being the supplier's responsibility to being the buyer's responsibility. It is important to consult the ICC for the most recent definitions, but in the following questions (101-111) you can understand the rules.Note: sharpen your knowledge on INCOTERMS. Please consider the following Objective Re-sponse questions
Looking at stage 8 of the procurement and supply cycle, what does TCA mean?
When evaluating offers, it is important to remember that the best price may not be the lowest. To ascertain that; the total cost of Acquisition TCA (the cost a buyer bears for placing orders and re- ceiving a product from a supplier) should be uncovered and compare against offers received. Things to consider that might make up the total cost of acquisition are;1) logistics and handling costs2) Cost of requisition3) Rework4) stock cost5) Delay6) Inspection7) customer services8) consumables9) Training & supportRefer to the question column for response
When evaluating offers, it is important to remember that the best price may not be the lowest. To ascertain that; the total cost of Acquisition TCA (the cost a buyer bears for placing orders and re- ceiving a product from a supplier) should be uncovered and compare against offers received. Things to consider that might make up the total cost of acquisition are;1) logistics and handling costs2) Cost of requisition3) Rework4) stock cost5) Delay6) Inspection7) customer services8) consumables9) Training & support
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Napo Posholi commented on October 02, 2023 They are very helpful Anonymous upvote
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