ECONOMICS

Detailed explanation-1: -Varying invoice is one of the duties of a purchasing agent. EOQ model incorporates only the purchasing costs, ordering costs and carrying costs. Under EOQ model, the ordering costs are minimized and the carrying costs are maximized. The two basic issues in inventory are how much to order and when to order.

Detailed explanation-2: -Following are the objectives of purchasing: To maintain continuity in supply. To maintain quality standards. To avoid duplication, wastage and obsolescence.

Detailed explanation-3: -Answer and Explanation: The form organized by the purchasing agent and sent to the seller to get material is known as purchase order.

Detailed explanation-4: -Purchase Requisition – the form used to notify the purchasing agent that materials are needed. Purchase Order – the purchase requisition that gives the purchasing agent authority to order the materials. Vendor’s Invoice – the invoice from the vendor that should be compared to the purchase order.

Detailed explanation-5: -A purchasing procedure outlines the process of obtaining goods and services through your supply chain. As a business, you need to purchase goods and services to meet your needs, in turn, meeting your customers’ needs. Customers want and expect quality in the services or products they purchase.