2 Procurement Inventory
Procurement inventory basically relates to the purchase situation in a part of the business/industry. In order to estimate the total cost while including the innovation efforts explicitly, it is necessary to understand the role of innovation and also the purchase context.
2.1 Purchase
As shown in Figure 2.1, a purchase might be for trading as well as for manufacture.
2.1.1 Purchase for Trading
An established trading firm may purchase regularly certain items and sell these to consumers/group of consumers. In most cases, the item is well known to the trading firm as well as to the consumers. ...
