Selecting Business Location Factor Influencing Location Small VS Large Business Purchasing Inventory Purchasing Policies

1. 1
PHYSICAL FACTORS OF BUSINESS
Selecting Business Location
Factor Influencing Location
Small Business Vs Large Business
Purchasing Inventory
Purchasing Policies
“WINNERS ARE NOT PEOPLE WHO NEVER FAIL BUT PEOPLE WHO
NEVER QUITE.”

2. 2
GROUP MEMBER NAME:
AYESHA WAHEED
LAIBA MUKHTAR
MUNEEBA SOHAIL
SHAMEEM ARA
TOOBA AZHAR
WAJIHA ISMAIL
DATE:
March 26, 2019
SUBMITTED TO:
MISS UZMA

3. 3

4. 4
CONTENTS
PHYSICAL FACTOR......................................................................................................................... 5
BUSINESS ENVIRONMENT..........................................................................................................5
INTERNAL FACTORS .................................................................................................................. 5
FACTOR AFFECTING INTERNAL BUSINESS ENVIRONMENT............................................................ 5
EXTERNAL FACTOR.................................................................................................................... 5
MICRO FACTORS ................................................................................................................... 6
MACRO FACTORS .................................................................................................................. 6
SELECTING BUSINESS LOCATION....................................................................................................7
FACTORS EFFECTING ON BUSINESS LOCATION............................................................................ 7
FACTORS INFLUENCING BUSINESS LOCATION............................................................................... 10
MAIN FACTORS INFLUENCING CHOICE OF BUSINESS LOCATION................................................. 10
SMALL AND LARGE BUSINESS...................................................................................................... 12
LOCATION FOR BUSINESS........................................................................................................ 12
DIFFERENCE OF SMES AND LARGE SCALE INDUSTRIES............................................................... 12
LOCATION OF SMALL AND MEDIUMSCALE ENTERPRISE ........................................................ 12
LOCATION OF LARGE SCALE INDUSTRIES............................................................................... 13
PURCHASING INVENTORY........................................................................................................... 14
ORGANIZATION OF PURCHASING DEPARTMENT....................................................................... 14
CENTRALIZED PURCHASING................................................................................................. 15
DECENTRALIZED PURCHASING............................................................................................. 15
ORGANIZATIONAL STRUCTURE OF PURCHASING DEPARTMENT................................................. 15
PURCHASING POLICIES................................................................................................................ 18
PURCHASING POLICIES............................................................................................................ 19
SPECULATIVE PURCHASING..................................................................................................... 19
HAND TO MOUTH BUYING ...................................................................................................... 19
FORWARD PURCHASING......................................................................................................... 19
RECIPROCAL PURCHASING....................................................................................................... 20
POLICIESABOUT SUPPLIERS..................................................................................................... 20
SELECTIONS OF SOURCE OF SUPPLY............................................................................................. 21
CONCLUSION.............................................................................................................................. 21

5. 5
PHYSICAL FACTOR
A business exists justlike you and I, in a world that is filled with countless things
that form its physical environment. In this you will learn about the nature of
those items, and we look at their importance to the business.
BUSINESS ENVIRONMENT:
Business Environment means all of the internal and external factors that affect
howthe companyfunction including employees,customer,management supply
and demand. There arevariousfactorsthat are included in internal and external
environment. Business environmentis a direct relationship between successful
management and the influence and impact of environmental change.
Environmental factors can be both internal and external for the business.
INTERNAL FACTORS:
-
Internal factors are those factors which exist within the premises of an
organizationand directly affects the differentoperationscarried outin business.
It relates to all aspects within the boundaries of the organization and generally
are within the control of top management.
FACTOR AFFECTING INTERNAL BUSINESS ENVIRONMENT
1. Value system
2. Mission and objectives
3. Management structure and nature
4. Human Resources
5. Other factors
 Physicalassets and facilities
 Financial resources
 Marketing resources
EXTERNAL FACTOR:
External environmentof a business consists of allthoseexternal factors thatare
operating outside the premises of the organization, and that can potentially
have both a positive and a negative impact on the business. The external
environmental factor are the two types.

6. 6
EXTERNAL FACTORS IS FURTHER CATEGORIZED IN TWO MAIN
FACTORS AND THEN SUB-FACTORS AS FOLLOWS:
MICRO FACTORS
1. Customers
2. Suppliers
3. Competitor
4. Market intermediaries
SUPPLIERS:
Suppliers are those people who are responsiblefor supplying necessary inputs
to the organization and ensure the smooth flow of production.
COMPETITORS:
Competitors can be called the close rivals and in order to survive the
competition onehas to keep a closelook in the marketand formulateits policies
and strategies as such to face the competition.
MARKETING INTERMEDIARIES:
Marketing intermediaries aid thecompanyin promoting,selling and distribution
of the goods and services to its final users. Therefore, marketing intermediaries
are vital link between the business and the consumers.
MACRO FACTORS
1. Economic factor
2. Technological factor
3. Legal factor
4. Political factor

7. 7
ECONOMIC FACTOR:
Economic factors include economic conditions and economic policies that
together constitutes the economic environment. These includes growth rate,
inflation, restrictive trade practices etc. Which have a considerable impact on
the business.
TECHNOLOGICAL FACTOR:
Latest technologies help in improving the marketability of the product plus
makes it more consumer friendly. Therefore, it is important for a business to
keep a pace with the changing technologies in order to survive in the long run.
LEGAL FACTOR:
Organization are very susceptible to change in laws and interpretation. Legal
environment has a permanent and lasting impact in shaping business. Labour
law, minimum wages act, law of contract, import & export control act, are few
legal factors.
SELECTING BUSINESS LOCATION
FACTORS EFFECTING ON BUSINESS LOCATION:
Most business studies textbooks can’tresiststarting a section on business
location with the following phrase:
“The three most important things inretailing are location, location
And location”.
Itwas reputedly firstsaid by the former boss of Marks and Spencer (lord Sieff)
to describe the main success factors in his business.
Choosing a business location in such a business-oriented country like Pakistan
is a big commitment and may take time to find the perfect spot. Where you
decide to set up your store, coffee shop or office will directly impact the
longevity of your business.

8. 8
The need for selecting a business location arises when a new enterprise or
branch is to be established, when a firm must movebecause it has outgrown.
The ideal location is one that permits the lowest unit cost in production and
distribution of a product or service. The costof production will greatly be
affected by the availability of raw material to factory site. Cost of labour is
another factor which will greatly affect the production costs. Before finally
selecting the site for the plant many other factors are to be taken in to
consideration. These factors are:
1. RAW MATERIAL:
Ifyouintend runninga manufacturingor productionbusiness,thenthe nearness
or availability of raw materials is a factor you must notjoke with when choosing
your business location. If your businessis notsited close to these raw materials,
then sourcing and transportation will reduce your profit margin.
2. TRANSPORT COSTS:
Transport includes the cost of getting inputs in to the business (example raw
materials for the production line or stocks for sale) and also the cost of getting
products delivered to customers. Finished products must be placed in markets
at the right time and at lowest possible price.
3. CLIMATE:
In certain industries climate condition of the place has great influence for
example the manufacture of shoes requires damp climate so that leather may
not be dried up soon.
4. MARKET:
Nearness of market becomes an important factor in many industries the plant
in which perishable commodities are processed should be located near the
market. Where the goods are delivered rapidly. The longer distance between
factory and market can cause the higher cost of transportation. It is also
necessary for your business to succeed make it easy for customers to find your
product.

9. 9
5. LOCATION OF COMPETITORS:
A location near other firms engaged in the same or similar lines of business is
often advantageousbecausebuyersalready attracted to the area.But this is also
a disadvantage having a same line of business because it divide the customers
and maximum customers are attracted by best quality and cheap prices of
product.
6. POPULATION AND STYLE:
This factor is also considered in the location, which means the number of
inhabitants, their choice and way of living. The nature and type of persons living
in an area to whom goods are to be supplied, will influence the location of an
industry.
7. GOVERNMENT POLICIES:
While selecting a location for the plant, it is very important to know the local
existed Government policies such as licensing policies, institutional finance,
Governmentsubsidies, Governmentbenefits associated with establishing a unit
in the urban areas or rural areas etc.
8. LABOUR:
In our country there are few industrial centres and in most industries labour is
casual or temporary. Basically, ours is an agricultural country and men are
engaged in their fields to which they attach come to industrial centres to earn
in off seasons. The adequately of labour supply in a given area must be
considered in term of the types of skilled labour required by the business, (
Karachi, Lyallpur, Okara arethemostsuitable places for textile industries where
skilled labour can easily be had). The cost of labour, is another important factor
locating a plant.
9. POWER AND FUEL:
Nearness to cheap power and fuel (Coal, Oil Natural Gas) is important in the
location of glass, iron and steel and other industries using largeamountof these
elements.

10. 10
10. WATER:
Water is an important manufacturing requirement in some very big and
prominent industries. The factories producing paper, chemical rayon, steel
requires large quantities of water. In such cases naturally, more location
importance will be given to those places where water supply is abundant.
FACTORS INFLUENCING BUSINESS LOCATION
Location decisions, once made, are difficult and costly to undo. The costs of
moving an operation are often significant and run the risk of inconveniencing
customers and staff. It is always bestto get the location decision right first
time.
MAIN FACTORS INFLUENCING CHOICE OF BUSINESS LOCATION
The main aim of choosing a business location is to achieve a balance between
three related objectives:
The costs of the operation
The customer service that the business wants to provide
The potential revenues that can be achieved from the location
The factors that influence the choice of business location are as under:
1. LAND COSTS:
Sometimes the land will be purchased, but more often it will be rented along
with the business buildings and facilities. Rentals can vary enormously
depending on the location and the facilities provided. Government grants and
other incentives are also often available to reduce the land costs of locating in
poorer regions.
2. ENERGY COSTS:
Some businesses use substantial amounts of energy (e.g. gas, electricity) but
they should be able to negotiate a good price for their energy needs regardless
of location in the Pakistan.

11. 11
3. COMMUNITY FACTORS:
The costsof a businesslocation can beinfluenced by manynon-financialfactors,
but which can still be significant when making the choice. These include:
Local amenities & services (e.g. schools, professionalservices)
Local governmentattitude to supporting business (including financial
assistance)
Language
Political stability
4. CUSTOMER CONVENIENCE:
Probably themostimportant factor. Many businesses need to be located where
customers find it quick, easy and cheap to access the servicebeing provided we.
E.g. a fast-food outlet needs to be somewhere close to a strong customer
footfall, not hidden away out of sight. Out-of-town retail parks are situated
within a convenient short drive from major population centres.
5. LABOUR SKILLS:
Where specialist skills are required, this can be a big issue. For example,
technology firms tend to locate themselves in areas wherethere is well-
established expertise.
6. SITE SUITABILITY:
A site may need to have some particular characteristics to maximise customer
satisfaction and revenues. E.g. a luxury restaurant or hotel needs to be located
somewherethatcustomers find attractive –notin themiddle ofa trading estate.
7. EXPANSION POTENTIAL:
Future production capacity often has to be taken into account. A location
might tick many other boxes, but if it provides limited scope for expansion
then it might be rejected. If a location restricts output, then revenues are
potentially damaged.

12. 12
SMALL AND LARGE BUSINESS
LOCATION FOR BUSINESS:
Your businesslocation is a big deal. Whether it’s yourfirsttime aroundor you’re
opening a second location, choosing a business location is not a decision that
you should make on a whim. Your choice can impact your business’s chanceof
survival.
Choosinga location forbusinessis all aboutsetting yourbusinessup for success.
Your businesslocationsets thetone foryourbusiness.Itaddsto whatcustomers
think of your business. The business location determines how well you will do.
Choosing a location is not a task you should take lightly.
The aim of establishing any business is to maximize profit, businesses engaged
by individual, group of people, firms, industries and government. They range
from small to medium and large scale. In developing economic, the small scale
and medium enterprises are the most common form of business.
The aim of any economy (industrialized or non-industrialized) is dependent on
how well organized the small industries are.
DIFFERENCE OF SMES AND LARGE SCALE INDUSTRIES
BIG COMPANIES:
Decisions haveto go through approvalprocesses, things (and deliverables)
move slowly.
SMALL COMPANIES:
Decisions get approved quickly, things (and deliverables) move much quicker.
LOCATION OF SMALL AND MEDIUM SCALE ENTERPRISE
1. RAW MATERIALS:
Nearness to raw materials is factor that cannot be joked with in the location of
a SME, SMEs are to be sited close to the market(consumer) when the finish
product is bulky than the raw material but if the raw material is more heavier

13. 13
than the finished product it is wise to locate the industry close to the raw
material.
2. AVAILABILITY OF BASIC INFRASTRUCTURES:
Availability of basic infrastructure can affect your choice of locating SMEs,
amenities and infrastructure such as water supply, power supply, good road
network and security are very essential to the success of SMEs.
3. PSYCHOGRAPHICS (INDIVIDUAL MINDSET AND BELIEFS):
The mindset and beliefs of your customers or the distinctive quality of a
particular region is also a factor to consider when choosing a location for your
small business.
For example: If you site your pork production chain in a muslim dominated
region you tend to have low sales return.
4. DEMOGRAPHICS:
The characteristics of a population is a big influence on choice of business
location. The type of service your business render and the status of your
consumer will determine the location of business.
Example: The best place you can open a stationery business is a school
environment where the demographics is made up of students.
5. GOVERNMENT ECONOMIC POLICY:
Economic policy of a region can influence the decision choice of locating a
business. Nations that practice capitalism are open up to investment and the
best bet for SMEs to thrive compare to countries practice socialism where
government controls all business other factors to consider are: fiscal and
monetary policy, environmental laws, taxes, levies and duties.
LOCATION OF LARGE SCALE INDUSTRIES
1. RAW MATERIAL:
The importanceof raw materials to industries cannotbeoverlooked, location of
industries is sometimes determine by raw material due to the complexity of
modern industries where a variety of raw materials are needed for production.
Industries that requires heavy raw materials in their early stages of production
are sited close to the raw materials needed.

14. 14
2. TRANSPORT:
Transportbyland, water orroad is compulsoryfortheassemblyofrawmaterials
and for the marketing of process goods. Thedevelopment of railways and roads
connecting the port towns with the hinterland will determined the location of
industries.
3. MARKET:
The purposeof manufacturing is for finished goods reach the marketwhere the
end consumer can acquire them. Nearness to market is necessary for the
distribution of manufactured goods. It helps in reduction of transportcost and
enables the consumer to get the goods at a cheaper rates. Market is important
for perishableand heavy commodities, as so doing industries aretrying as much
as possible to get close to the market.
4. GOVERNMENT POLICIES:
Government activity in planning the future distribution of industries, for
reducing regional disparities, elimination of pollution of air, soil and water and
for avoiding their heavy clustering in major and big cities, will influence the
location of a large scale industry.
PURCHASING INVENTORY
The function of purchasing is performed by every business concerned, whether
engaged in the distribution of goods or services or in the manufacturing of
products. A number of articles and merchandiseare to be purchased in order to
run the particular business e.g. Furniture's and fixtures, raw materials, tool and
Equipment, Machinery, Supplier etc.
With the Systemof large scaleproduction and existence of many competitors in
the market more emphasis is laid on reducing the cost of production and
distribution.
ORGANIZATION OF PURCHASING DEPARTMENT:
The establishment and organization of purchases department will depend
mostly on the size and nature of any business concerns. In an average or big

15. 15
concernwheregenerally the volumeof purchaseis larger,the articles purchased
areof varioustypes,and designs,technical and expert knowledgeis essentialon
the part of buyers etc. A separate and an independent purchasing department
is established. But when the concern is small and separate establishment of
purchasing is not economically justified, the function of purchasing is either
attached with sales or manufacturing department. When the merchandise is
purchased with a view to re-sell them, purchasing maybe placed with the sales.
CENTRALIZED PURCHASING
Centralized procurement means that a single departmentcontrols and manages
the purchasing for the whole organization. Ideally a manager oversees the
purchasing department regarding what materials need to be purchased and in
what quantity. The single purchasing department is generally located in the
headquarters.
DECENTRALIZED PURCHASING
With this method, rather than leaving the purchasing control with a single
department, it is granted to local branches or departments. They have the
authority to purchase items necessary as per their requirements
Contrarily, centralized purchasing desks often transact with national vendors
who may not be able to nimbly fulfill sudden purchase orders.
Some companies have adopted a hybridized centralized/decentralized
purchasing approach. In these cases, certain facilities have the purchasing
responsibility for some critical production items, while the central purchasing
organization is tasked with purchasing non-critical or shared services items.
ORGANIZATIONAL STRUCTURE OF PURCHASING DEPARTMENT:
Purchasing department is a staff function in the overall company structure
(Refer Fig.23.1).

16. 16
The internal organization of the purchasing department is on a line basis, with
purchasing agent, director of purchases or purchasing manager being the in
charge of purchase department. He is responsible for the overall efficient
operation of the department. The purchasing manager is, however, assisted in
purchasingbya numberof assistantsanda fewclerical staff (referFig. 23.1).The
purchasing manager has the powers to execute purchasing contracts for the
concern.
He divides the duties among the assistants according to thenature of purchases
to be made. For example, one assistant may purchase only electrical goods,
another (major) raw material, third plant equipment and so on. This functional
division of efforts makes for increased specialization and gives a chance to the
assistantto better feel and know the market, he is assigned. Fig. 23.1 shows an
organization of a typical purchasing department.
There are three main sections namely purchasing, purchase service and
records:
1. Purchasing section places orders with the vendors.
2. Purchaseservicesection follows theprogress of theorder at vendor’s end, its
shipment by the vendor and its final receipt in the company.
3. Records section maintains all records of quotations, costs, purchases, etc.
Purchasing process:
Purchasing is the formal process of buying goods and services. The purchasing
processcan varyfromoneorganization to another, butthere aresome common
key elements. The process usually starts with a demand or requirements – this
could be for a physical part (inventory) or a service.

17. 17
1. PURCHASE REQUISITION
Purchaserequisition is the basisfor placing the purchaseorder formaterials and
supplies. It is a written request prepared by the foremen or authorized officer
or responsible officer of the user department and hand over to the purchase
department. The purchase requisition includes the details like material code
number, type of materials, quality and quantity of materials etc. Generally, the
purchase requisition is prepared in three copies. The first copy is sent to the
purchase department. The second copy is sent to the production and control
department. The user department for the future reference retains the third
copy.
2. QUOTATION, PROPOSAL AND SELECTION OF VENDOR:
The purchase department or the purchase officer should know the sources of
supply of various raw materials and requirements of the organization. The
selection of right sources of supply gives maximum benefits to the
organization. On the basis of the various sources of supply, the purchase
department or the purchasing officer can call for tenders or quotations. Thus,
received quotations ortenders arecomparedwith their catalogues,pastrecords
and published statements.The purchasedepartmentor the purchaseofficerhas
to select the right supplier after the careful analysis of the received tenders.
3. PLACING THE ORDER:
After selecting the right supplier, the purchase department or the purchase
officer can prepare the purchase order and send the same to the supplier
without any further delay. A purchase order is the commitment by a buyer to
pay for goods ordered. Similarly, it is the seller’s authority to charge the buyer
for supplies made. It becomes a legal contract.
4. FOLLOW-UP, RECEIVING & CHECKING:
The time, date and mode of delivery are mentioned in the purchaseorder. If the
order is not executed as per the specifications of the purchase order, the
purchase department or the purchase officer should take follow up action.
The purchasedepartment while receiving the materials performs the following
functions.
1. Prepare the statement of goods received.

18. 18
2. Indicate the identification mark for each type of materials separately.
3. Checking the quantity and quality of materials.
The receipt of materials is compared with purchase order and delivery note
issued by the suppliers. If thematerials are not received as per the specification
of the purchase order and delivery note, the materials may be rejected.
Thereafter, an inspection reportis prepared in a specified form and the sameis
sent to the supplier for proper execution of an order.
5. MAINTENANCE OF RECORD:
The purchase manager or the purchase officer should check the invoices for
early settlement. If the materials are received in good condition as per the
specification of the purchase order, the delivery note may be issued by the
seller. If an invoice is correct in all respects, the purchase manager or the
purchaseofficerwill passtheinvoiceand sendthe sameto accountsdepartment
and finance department for payment. The invoice may be impressed with the
rubber stamp as Bill Passed for Payment.
PURCHASING POLICIES
Buying refers to obtaining goods and services in exchangefor money or barter.
The successful buying is the combination of the following:
1. Right price
2. Right quantity
3. Right quality
4. Right time right supply sources
Buying decisions call for the following consideration
1. what product to buy?
2. what quality, varity, grade brand?
3. in whatquantity to buy. The decision depends on the inventory requirement
4. determination of price
5. selection of channels of distribution i.e. wholesalers, retailers, agent or sole
distributor

19. 19
PURCHASING POLICIES
Companies follows different purchasing pattern suited to their needs, keeping
in view demand, prices, supply, storage facility, risk, season and availability of
required funds. Companies may follow one or more of the following policies
1. Policies about quantity
2. Policies about suppliers
SPECULATIVE PURCHASING
It is an attempt to gain consider profits by buying an excess of materials at
greatestthan normalriskwhen prices are consideredto be at a low point. There
is very little relationship between the quantity boughtand the quantity needed
in the company. In such buying if the prices go up and the speculation of the
buyer is correct the company will gain but if the prices futher falls then heavy
losses are to be suffered. I type of buying is not at all advisable for a company
carrying on production regularly. It is very difficult to trace whether a particular
buying is speculative or not except where the quantity purchased is in much
excess than the company usual requirement.
HAND TO MOUTH BUYING
This policy demands to buy that quantity which is actually needed. Hence it
involves buying in small quantity. The reason for adopting this type of policy is
shortage of funds, limited or short life of the material or less storage space
availability.
FORWARD PURCHASING
Under this policy larger quantities to run for a longer period of time are bought.
Its objectives is to benefit from economic of larger buying which includes low
purchase price, shipping and receiving expense. This policy is adapted under
following condition is:
1. funds for larger order are available without sacrificing other important
needs.
2. storage space will accommodate the larger quantities of marchandies or
materials.

20. 20
3. the shelf life of the goods bought is long.
4. the market demand is stable.
RECIPROCAL PURCHASING
It refers to " you buy from us, we will buy from you." This policy is common
among manufacturers. It has the following reasons
1. Better relations between buyer and seller are enjoyed.
2. standardization of quality is facilitated.
3. interdependence is necessary.
4. unnecessary competition is avoided.
5. both the parties gain.
6. buyer and seller take the advantages of each other's specialization, quality,
service, price. It is, however suggested that if the above factors are lacking
reciprocal buying should be avoided.
POLICIES ABOUT SUPPLIERS
Buying policies are also formulated keeping in view the type or suppliers
selection ofsupplier dependson regular and dependablesourceof supply,price,
quality, variety, credit facility, timely delivery, and sales return services. Hence,
the following policies are pursued
1. CONTRACT PURCHASING
Under it, an agreement is drawn between the buyer and the seller taking into
account price, terms of sales, discount delivery schedule. It is a confidence
buying.
2. MAKE VERSUS BUY POLICIES
Producers have to draw out a policy on whether to buy a part of the product
fromthe market or manufacturer it in the factory. Car manufacturers prefers it
to buy tries and tubes ( usuallyBridgestone) and plugs( e.g. NGK ) on the market
and manufacture engine, carb-uretor, radiator, etc. By themselves
If the company has necessary and high-tech equipment and technical staff
specialized in materials, assembly line, and engineering it finds it best to
manufacture, otherwise buys on the market.

21. 21
3. BID PURCHASING
This call for inviting bids from several suppliers and the best one is acceptable
quality, goodwill of the bidder, ensured timely supply, and reliable service.
4. SINGLE VERSUS SEVERAL VENDORS
Another buying one policy calls for thinking over buying either from a single
sources. Buying from a single fixed sources entails many Denger; on the other
hands, buying from several sources is safe and producer prefer to buy from
many vendors the following situations are taken into an account.
 Several-vendors are preferred when
1. Prices vary from vendors to vendor.
2. Uniformity of materials is irrelevant.
3. Supply is not abundant and guaranteed.
 Single-vendors policy is adopted when
1. Prices are fixed.
2. Uniformity of materials is important.
3. Supply is abundant and guaranteed.
SELECTIONS OF SOURCE OF SUPPLY
It depends on the following:
a) supplier's credit policy
b) sales return facility
c) place, times, of sacraity
d) guaranteed supply, especially during time of scarcity
e) amount of discount
f) uniformity of grade, quality
CONCLUSION:
These factors have an important impact on business. The internal environment
will reveal its strengths and weaknesses, while the external environment will
reflect the opportunities available to the organization and the threats it faces.

22. 22
Through this the company will be able to implement business policies that will
ensure success.
Locational factors are very important and must be considered when setting up
a business so, as to have a blossom growth.
Purchasing is a technical, difficult, and fussy function. The purchasing agent
shouldbe expert, technical- hand, and specialized in buying. Hemusthavelatest
knowledge of the market. He should not depend on only one source of supply.
Many sources should be utilized in order to avoid any buying problem.