ABSTRACT
Chapter 7 described the importance of materials as one of the key input resources for operations and discussed the various concepts and techniques that can be used for planning and control of inventory to produce goods and services both efficiently and cos effectively. This chapter deals with purchasing and supply chain management, which is the management function concerned with the purchasing of materials and developing a reliable and close relationship with the operations external suppliers. In particular, the chapter addresses the following questions:
1 How important is the purchasing and supply function? The purchasing and supply function is very important to the effi ciency and effectiveness of any organization because of its financial, operational and strategic implications. These aspect of purchasing and supply activities are being described.
