CORRECT TEXT

CORRECT TEXT

Explain which factors should be considered when deciding the quantity of a product to order.

View Answer

Answer: When reviewing supplier’s response the procurement professional should consider the right quantity of product or service that has to be ordered at anytime as against the price to decide how to gain the best cost.

Factors to consider include the following

(1) Cost of inventory

(2) cost of insurance

(3) cost of transportation.

Refer to the question column for response