Copyright?2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin12-*CHAPTER12ProcurementCopyright?2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin12-*FourBuyingSituationsRoutineorderProceduralproblemPerformanceproblemPoliticalproblemCopyright?2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin12-*Costtrade-offstoBeConsideredbythePurchasingExecutiveSource:DouglasM.LambertandJayU.Sterling,“MeasuringPurchasingPerformance,”ProductionandInventoryManagementReview4,no.6(June1984),p.52.ReprintedwithpermissionfromP&IMReview,June1984.Copyright1984byT.D.A.Publications,Inc.,Hollywood,FL.*Thesavingsassociatedwithvolumebuyinginclude:Lowerper-unitpurchasingpricesLowertransportationcostsLowerwarehousehandlingcostsLowerorder-processingcostsLowerproductionlotquantitycostsLowerstockoutcosts±Thec