Question

The Eagle Pawn Company is a regional business that owns seven pawn stores in the Houston area. The owners of Eagle Pawn have recently purchased a new software system designed to better track their inventory. Now that they have had the system for a couple of months, they have decided to upgrade to a newer version. The original purchase is an example of a(an) ________, while the current purchase will be a(an) _____.

Answer 1

The original purchase is an example of a(an) New Buy/Purchase, while the current purchase will be a(an) Modified rebuy.

Step-by-step explanation:

New Buy: When a company purchases a new good or service for the first time to implement, it refers to a new buy. Since the Eagle Pawn Company has purchased a new inventory tracking software for the first time to monitor the inventory control, that purchase is an example of a new buy.

Modified Rebuy: Modified rebuy defines the state of upgrading a product to maximize its production. Since the Eagle Company has updated a newer version, they have modified their rebuy. It takes less time, and it is not challenging at all.