Question

Which of the following departments or functions are involved in the basic procurement process using a procure to stock strategy?

1) Finance
2) Purchasing
3) Inventory Management
4) Production Planning

Answer 1

The basic procurement process involves multiple departments: Finance, responsible for budgeting and cost control; Purchasing, which manages supplier negotiations; Inventory Management, ensuring raw resources are available; and Production Planning, aligning production with inventory levels.

Step-by-step explanation:

The basic procurement process using a procure-to-stock strategy typically involves several key departments or functions within a company. These are:

• Finance - This department is responsible for the financial aspects of procurement, including budgeting, payment processing, and cost control.
• Purchasing - This function handles the acquisition of materials and services, negotiating with suppliers, and contract management.
• Inventory Management - This area concerns itself with stocking the right amount of inventory, managing stock levels, and ensuring raw resources are available when needed.
• Production Planning - Production planners work on scheduling the production of goods, managing work orders, and aligning production with inventory levels.

These functions work together closely to ensure a smooth procurement process, which is essential for the production of goods, balancing marketing needs, and ensuring efficient distribution.