In the context of the purchase decision-making process,requirements planning consists of:
A)performing a value analysis on suppliers.
B)engaging in an in-depth investigation before qualifying a firm as a potential supplier.
C)attempting to forecast future requirements of the firm so as to plan their purchases in advance.
D)determining how best to advertise a company's product.

Question

Quizplus · Accepted Answer

Requirements planning involves forecasting future requirements of the firm to plan their purchases in advance. It is focused on identifying the quantity and quality of goods and services required to meet the needs and demands of the organization. Performing a value analysis on suppliers (option A) is a part of supplier evaluation process, while engaging in an in-depth investigation before qualifying a firm as a potential supplier (option B) is a part of supplier selection process. Determining how best to advertise a company's product (option D) is a part of marketing strategy development process and is not directly related to requirements planning.

In the Context of the Purchase Decision-Making Process,requirements Planning Consists