Purchase Decision-Making: Raw Materials
In the classical model of a centrally planned economy enterprises acted according to commands, usually referred to as ‘plan quotas’, issued by a planning authority, which in China could be the SPC, a ministry or an industrial bureau. Enterprises received supplies from an authority, arranged production and then delivered their output directly to the authority. Therefore an exchange relationship was organized vertically along the planning hierarchy, and there was no need for transactions at the horizontal level between enterprises and their suppliers and customers, as every aspect of input and output was coordinated and controlled by the planning authority.
KeywordsTrade Fair Deputy Director Purchasing Decision Material Supply Chinese Enterprise
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- 3.Data from ‘Change and influence of the industrial production expenses’ (gongye shengchan feiyong de bianhua ji yingxiang), Beijing Municipal Finance & Administration Research Institute. It is included in Beijing MPC, Integrative Economic Study (zonghe jingji yanjiu) (Beijing: Beijing Science & Technology Press, 1991), pp. 74–81.Google Scholar