• Eugene L. Magad
  • John M. Amos
Part of the Competitive Manufacturing Series book series (COMMS)


Purchasing is essential to all organizations — manufacturing, nonmanufac-turing, profit-making, nonprofit, and government. Its responsibility is to obtain purchased materials and services in the required quantity, at the right time (delivery), within desired quality specifications, and at a minimum total cost. Purchasing is a key subfunction within a materials management organization, uniquely involved in frequent contacts with different groups. It must cooperate closely with other materials management subfunctions to accomplish mutual objectives. Purchasing also has frequent contacts with other company functions such as engineering, marketing, quality assurance, finance, and manufacturing, as well as important contacts with suppliers of goods and services. Good communication with these various groups is essential; the relationships are illustrated schematically in Figure 7-1.


Cash Flow Material Flow Price Determination Quantity Discount Purchase Order 
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Copyright information

© Springer Science+Business Media New York 1989

Authors and Affiliations

  • Eugene L. Magad
    • 1
  • John M. Amos
    • 2
  1. 1.William Rainey Harper CollegeUSA
  2. 2.Center for Applied EngineeringUniversity of Missouri-RollaUSA

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