O'Reilly logo

Supply Chain Management by Vinod V. Sople

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

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

 

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 ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required