Where several operating units within an organization have common requirements and where there is an opportunity to strengthen a negotiating position by bulk buying, _______ purchasing is an attractive option.
A)standardized
B)decentralized
C)centralized
D)globalized

Question

Quizplus · Accepted Answer

Centralized purchasing allows multiple operating units to leverage their collective buying power, resulting in bulk purchasing and better negotiating positions. Standardized purchasing may also be a factor, but it is not the defining characteristic of centralized purchasing. Decentralized and globalized purchasing would not necessarily result in the same benefits as centralized purchasing.

Where Several Operating Units Within an Organization Have Common Requirements