The document discusses various costs that should be considered when analyzing the total cost of ownership for a purchased item. It identifies categories of costs such as acquisition, maintenance, repairs, returns, customs duties, and transportation. It also discusses different types of pricing discounts commonly offered by suppliers, such as cash discounts, trade discounts, quantity discounts, and cumulative volume discounts. Finally, it notes that many aspects of a purchase agreement are subject to negotiation, including quality, price, payment terms, transportation, and supply arrangements.

1. LOGI200 Purchasing Week 10 Chapter 9

14. Any Aspect of the Purchase Agreement is Subject to Negotiation Quality Specification compliance Performance compliance Test criteria Rejection procedures Liability Reliability Design changes Support Technical assistance Product research, development, and/or design Warranty Spare parts Training Tooling Packaging Data sharing, including technical data MIS Supply Lead times Delivery schedule Consignment stocks Expansion options Supplier inventories Cancellation options Transportation FOB terms Carrier Commodity classification Freight allowance/ equalization Multiple delivery points Price Purchase order price Discounts (cash, quantity and trade) Escalation provisions Exchange terms Import duties Payment of taxes Counter trade credits