Tutors on net
Tutors on NetTutors on Net

Purchasing Decisions

Purchasing Decisions
The profitability and the demand of any product depend on its design. It is designed as per the pre-fixed specifications and guidelines. The buyers purchase specially ordered goods which have been manufactured by following certain quality standards. The following factors are considered before making purchasing decisions:
  • The cost factors: The price of the materials is a major deciding factor. The transport, installation, operation, duties and taxes are taken into account.

  • Delivery: The routing and freight charges

  • Legal fees: The warranties, government guidelines, patents and public liabilities are considered.

Three main methods are used to assess the past record of the suppliers. They are:
  • The cost factors:The price of the materials is a major deciding factor. The transport, installation, operation, duties and taxes are taken into account.

  • The quality plan/rating: The quality of materials is decided by the extent of acceptance and rejection. The acceptance rate is ascertained by the percentage basis which is calculated as:

    Approved material/lots X 100
                   Total lots

  • The cost-ratio plan:The price is fixed depending upon the net price charged by the supplier. The cost- ratio plan is also used to decide the supplier or vendor. This is done on the basis of costs incurred for procuring the materials from the suppliers. The cost-ratios are fixed for factors such as quality, price, and timely delivery and so on.
The buyer seller negotiations are done to agree on a fair competitive price, deliver the goods at mutually agreed time, fix terms of delivery and to eventually build a trusting and sustained relationship. The price is the foremost and the most important factor because every supplier expects to make a neat profit out of every contract. The purchasing department negotiates hard for a lower price while still not compromising on quality and standards.

Online Solution Purchasing Decisions Help:

If you are stuck with a Solution Purchasing Decisions Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Solution Purchasing Decisions help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Solution Purchasing Decisions Homework Help. Please do send us the Solution Purchasing Decisions problems on which you need Help and we will forward then to our tutors for review.


We have the best tutors in math in the industry. Our tutors can break down a complex THE COST FACTORS problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning THE COST FACTORS concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for THE COST FACTORS tutoring and experience the quality yourself.