The document discusses key concepts in purchasing management including the purchasing process, sourcing decisions, supplier selection, and purchasing organization structures. It describes the role of purchasing in ensuring supply of materials at lowest cost while improving quality. The purchasing process involves requisitions, requests for quotation, and purchase orders which can now be done electronically for improved efficiency. Sourcing decisions evaluate making vs. buying based on factors like cost, capacity, expertise. Selecting suppliers considers criteria like quality, cost, reliability. Global sourcing provides opportunities but also challenges in dealing with international issues.

1. CHAPTER 2- PURCHASING MANAGEMENT Prof O S Rao

8. The Purchasing Process- Cont.