6
Procurement Methods
“If a man will make a purchase of a chance he must abide by the consequences
—Richard Richards”
Chapter Objectives
To understand:
- New paradigms in inventory and purchase management
- Economic order quantity (EOQ) inventory model
- Just-in-time practice
- Vendor-managed inventory
- Online procurement
Procurement Methods
Procurement methods can impact inventory levels. The EOQ calculation is traditional model to control inventory. Accurate input is required in the EOQ equation. However, based on current operational cost, EOQ method presents the most cost-effective quantity. For further reduction in the ordering cost ...
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