Production & Operation Management Full Series - No.19 ~ Purchase Management | Meaning | Objectives | Importance | Functions | Principles | Process |

✅ Production & Operation Management Full Series ✅ https://www.youtube.com/playlist?list=PLPf7aahSRKFVJixTVuDVcpl4mxRe1IInJ ========================== 📕 Purchase Production & Operation Management PDF Book 📕 https://imojo.in/1TxEGJJ ========================== 📌 Purchase Management Purchase Management 00:00 Starting 00:30 Purchase PDF BOOK of Production & Operation Management 00:57 Meaning of Purchase Management 03:03 Objectives of Purchase Management 07:46 Importance of Purchase Management 12:52 Functions of Purchase Management 18:07 Principles of Purchase Management 23:33 Procedure of Purchasing or Purchase Cycle 38:59 Purchasing Method 47:12 Vendor or Supplier Selection Process 👉 Meaning of Purchase Management Every organization requires external resources like materials, tools, and equipment, as they are not self-sufficient. Purchase management is the initial stage of the manufacturing process, which enables management to identify the appropriate supplier who can provide the necessary quality and quantity of materials at the right price and location. 👉 Objectives of Purchase Management 1.) Purchase at Minimum Cost 2.) Maintain Inventory Level 3.) Establish good relations with suppliers 4.) Identification of Alternative suppliers 5.) Coordinate with different departments 6.) To maintain Record for Future Use 👉 Importance of Purchase Management 1.) Set standards 2.) Efficient Administration 3.) Quality of the final Product 4.) Delivery in Time 5.) Increases Profitability 6.) Optimum utilization of capital 👉 Functions of Purchase Management 1.) Assessment of demand 2.) Selection of Vendor or suppliers 3.) Placing order 4.) Verification of invoices 5.) Developing coordination among departments 6.) Maintaining purchasing records and files 7.) Reporting to top management 8.) Creating goodwill 👉 Principles of Purchase Management 1.) Right Quality - What to purchase? 2.) Right Time - When to purchase? 3.) Right Quantity - How much to purchase? 4.) Right Source - From where to purchase? 5.) Right Price - At what rate 6.) Right Place - At what place to receive? 7.) Right Transportation - How to receive it? 8.) Right Contract - At what terms and conditions? 👉 Procedure of Purchasing or Purchase Cycle 1.) Purchase requisitions 2.) Source of the supplier 3.) Request of quotation 4.) Review of quotations 5.) Selection of Vendor or supplier 6.) Purchase order 7.) Follow up 8.) Purchase order Amendments 9.) Inspection of incoming materials 10.) Payment of the invoice 👉 Purchasing Method 1.) Purchasing according to requirements 2.) Purchasing for a specified period 3.) Market Purchasing 4.) Speculative Purchasing 5.) Contract Purchasing 6.) Group Purchasing 👉 Vendor or Supplier Selection Process 1.) Quality 2.) Price 3.) Financial Health 4.) Past Performance Record 5.) Mode of Payments 6.) Miscellaneous Factors #purchasemanagement #purchasing #purchase #productionmanagement #operationmanagement What is purchase management Explain the objective of purchase management What are the Importance of purchase management Process of purchase management Benefits or advantages of purchase management