Delivering goods at the right time and in the right quantity is essential for supply chain management, and procurement plays a crucial role in ensuring this happens. Here are the explanations of the given concepts and their links to procurement rights:
i. Economic Order Quantity (EOQ): EOQ is a formula used to calculate the optimal quantity of goods to order to minimize inventory holding costs and ordering costs. Procurement's right to "timely delivery of goods" is linked to EOQ as it helps to ensure that goods are ordered at the right time and in the right quantity to prevent stockouts and overstocking.
ii. Just-in-Time (JIT): JIT is a philosophy of manufacturing and inventory management that emphasizes the production of goods only when they are needed, and delivery of goods just in time for their use. Procurement's right to "quality goods" is linked to JIT as it ensures that the goods delivered are of high quality and meet the organization's needs.
iii. Expected Delivery Time (EDT): EDT is the estimated time it takes for goods to be delivered to an organization. Procurement's right to "accurate information on goods and services" is linked to EDT as it ensures that the organization has accurate information on when the goods will be delivered, which helps with planning and managing the supply chain.
iv. Key Performance Indicators (KPIs): KPIs are metrics used to measure the performance of an organization. Procurement's right to "value for money" is linked to KPIs as it helps to measure the cost-effectiveness of the procurement process and ensure that the organization is getting the best value for money.
v. Total Quality Management (TQM): TQM is a management philosophy that emphasizes continuous improvement in all aspects of an organization. Procurement's right to "quality goods" is linked to TQM as it ensures that the goods delivered are of high quality, and the procurement process is continuously improved to deliver the best quality goods and services to the organization.