When a firm's buying center agrees that defect rates for a purchased component part should be less than .01% of items received, the team is:
A)identifying needs.
B)establishing specifications.
C)evaluating vendors.
D)negotiating purchase terms.

Question

Quizplus · Accepted Answer

Establishing specifications involves setting clear and measurable requirements for the product or component part that is being purchased. In this scenario, agreeing on the acceptable defect rate is a specification that the buying center is establishing.

When a Firm's Buying Center Agrees That Defect Rates for a Purchased