ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Purchasing has a broader meaning than procurement
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Procurement has a broader meaning than purchasing
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Procurement is broadly equivalent to purchasing
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None of the above
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Detailed explanation-1: -1)The answer is option B-Procurement has a broader meaning than purchasing. Procurement is often mistaken for purchasing, but the concept is totally different, as this is an organizational purchase that involves many steps and processes like identif…
Detailed explanation-2: -The similarities between purchasing and procurement lie in that both deal with obtaining goods and services. Purchasing as a function is contained within the larger function of procurement.
Detailed explanation-3: -Purchasing refers to the initial stage of materials management, which involves buying the goods and services from the suppliers. Procurement refers to the process of identifying the requirement and agreeing to the terms so as to obtain goods and services, through a competitive bidding method.