Which of the following acronyms can help her identify limits before engaging in the negotiation?

A procurement professional is preparing for a negotiation with supplier. She is setting targets for price which her company is seeking to achieve.

Which of the following acronyms can help her identify limits before engaging in the negotiation?
A . MIL
B . RAQSCI
C . TIMWOOD
D . PPCA

View Answer

Answer: A

Explanation:

MIL criteria indicate 3 limits that negotiator should establish:

M – Must achieve: minimum target/maximum you can concede on this point; the mandatory requirement or fall back position

I – Intend to achieve: realistic target you are aiming for on this point

L C Like to achieve: stretch target to achieve on this point.

PPCA is purchase cost analysis

TIMWOOD indicates 7 types of waste in Lean principles

The RAQSCI model is a mnemonic summary of a business model used to define and structure business requirements