|Home Page | Calculate USPS Charge | Calculate UPS Charge | Track Shipments | PC Mall | Better Business Bureau | Ink Cartridges|
|Hand-picked and listed by award-winning Business 2.0 magazine in their directory of the best business links on the Web.|
|Shopping | Videos2Web | Travel | ISM | Comp USA |Trading Cards | Patriotic Pins | Electronics | Cool Stuff | Business Cards|
Questions & Answers|
Welcome to PurchasingA2Z's question-and-answer page. From this page, you will be able to send us a purchasing related question and answer for possible publishing on this page. If selected, your question and answer will be posted on this page. To submit your question and answer, please email us by clicking here. Your submission will be reviewed within 72 hours.
How do I calculate Inventory Turns?
Inventory turns is the annual cost of the inventory issued divided by the average monthly inventory value.
The average monthly inventory value is calculated by adding the past 12 monthly inventory values and dividing the total by 12. At the end of each subsequent month, add the latest month’s inventory value and delete the 12th most distant monthly inventory value.
The annual cost of issues is calculated by adding the past 12 monthly cost of inventory issues. At the end of each subsequent month, add the latest month’s cost of inventory issues and delete the 12th most distant month.
Example: Annual Cost of Issues/ Average Monthly Inventory Value = Inventory Turns $400,000/$100,000 = 4.0 Turns
How do purchasers find their suppliers. Are there favorite places they look?
A prime source for finding new suppliers is the Thomas Register. The Thomas Register lists manufacturers by product categories and geographic location. Thomas Register supplier information can be obtained online from their website (its free), a set of their cds which can be networked within a company, and their set of catalogs. Another good source for finding suppliers is through Trade Associations, most can be accessed online. Another good source is purchasinga2z.com and internet search engines such as google.com which can be used to search for specific products, commodities or companies.
When contacting supplier references, which questions should I ask that will elicit worthy information about the vendor?
When checking supplier references, you need to collect as much information as possible to help you make a wise decision. You should interview at least three references and engage them in conversation. Verify all the information you already have about the supplier. Find out the scope of the project and how long the contract was for.
The following are some questions that could help you make an informative decision:
1. Were you pleased with the work performed?
2. Would you do business with this supplier again?
3. How long have you been doing business with this supplier?
4. What do you like best about the work performed?
5. What do you like the least about this supplier?
6. Is there anything about the work performed that you were not happy with?
7. Was the contract completed on time?
8. Was the supplier helpful and timely when responding to your questions?
9. Were there any unexpected expenses or additional costs unrelated to change orders?
10. Were there any unexpected delays unrelated to change orders?
Can you explain the difference between counter trade & reciprocal trading?
Cash poor countries and organizations engage in counter trading by exchanging commodities of equal value. Counter trading offers cash poor countries and organizations greater access to the world markets by offering them an alternate method of acquiring goods. Reciprocal trading provides participating nations with equivalent competitive trading opportunities based on mutual agreements negotiated to adjust tariffs, duties, and customs restrictions in order to increase foreign trade and improve border-to-border relationships among participating countries.
Whose terms and conditions govern when a supplier sends a buyer their terms and conditions after the buyer phones in an order, fails to send the purchase order to the supplier and accepts delivery?
The supplier's terms and conditions govern because the buyer did not send out the purchase order with his terms and conditions.
An annual requirements contract to deliver file cabinets each month was issued. The contract did not say anything about who bears the cost of uncrating and setting up the cabinets in the offices. The supplier has uncrated and set up the cabinets the first four months of the contract. Now, the supplier is refusing to uncrate and set up the cabinets unless he can increase his price. Can I force the supplier to continue to uncrate and set up the cabinets in the offices at the same contract price?
The supplier has to uncrate and set up the cabinets at no additional cost as the supplier has shown by course of his performance during the first four months of the contract that his intention was to uncrate and set up the cabinets.
Can you give me a more layman's interpretation of what a CPM is in internet online advertising?
CPM (Cost Per Impressions) is the cost per thousand a web site charges for an advertisement on a web site page. Internet advertising is typically sold on a CPM basis. An impression occurs when a visitor to a web site views a page where an ad is displayed. A $25 cpm rate represents $25 per 1,000 displays of a web site page where an ad is displayed.
Is a contract that does not state any particular quantity valid?
The Uniform Commercial Code (UCC) allows for the award of requirements contracts, which do not state any particular quantity. However, a requirements contract is only valid if the contract is awarded in "good faith." Sellers will normally ask for the contract to have an estimated quantity or a quantity range.
Can a shipment be rejected by just simply returning it?
What is the statute of limitations under the UCC?
Is a company liable for a purchase order valued at $50,000 placed by a purchasing agent who has been granted authority only up to $25,000?
What do the words "shall" and "may" mean?
What is a Cost-Reimbursement contract?
What is a Disadvantaged Business?
Is a purchase order valid if it is sent out unsigned?
Are vendors bound by requirements contracts awarded to two different vendors for the same set of requirements without disclosing this information to both vendors?
When does risk of loss pass to a buyer when goods are purchased FOB the buyer's plant?
What is meant by "good faith" in contracting?
I would like to stop taking annual physical inventories. Is there an alternative to physical inventories?
Why is it important to track inventory turns?
What is a bonded warehouse?
How are inventory turns calculated?
What is a sealed bid?
What is benchmarking?
What is a two-step procurement?
Is it proper to use the term "and/or" in agreements?
What is life cycle costing?
Why are Purchasing Cards so popular?
What process can be used to determine a vendor's price reasonableness when there is a lack of pricing information available?
©2005 PurchasingA2Z. All rights reserved.
Advertising Media Kit
Need A Web Site?