Question

The disadvantage of Centralized purchasing are:

A.High engineering Involvement
B.No need to buy from the local community
C.High need to coordinate purchased parts with the production schedules
D.All of the above

Answer 1

The disadvantage of centralized purchasing mentioned in the question is the high need to coordinate purchased parts with the production schedules. Centralized systems may reduce purchasing from local communities and can involve greater engineering oversight.

Step-by-step explanation:

The question asks about the disadvantages of centralized purchasing. The available options are: A. High engineering Involvement B. No need to buy from the local community C. High need to coordinate purchased parts with the production schedules D. All of the above. The correct answer to the question is C. High need to coordinate purchased parts with the production schedules.

Centralized purchasing concentrates the decision-making and purchasing power within one central department. This structure can lead to several disadvantages such as a higher need for coordination of purchased parts with production schedules due to the volume of procurement and the complexity of managing supplies from various sources. Centralized purchasing might overlook local community suppliers because it often looks for larger, possibly more cost-effective suppliers that might not be local. Moreover, centralized systems may require greater involvement from engineering teams to ensure specifications are met across all procured items.