systematic appraisal of the design,quality,and performance requirements of a product to reduce purchasing costs is referred to as
A) cost analysis.
B) a make-buy decision.
C) value analysis.
D) procurement analysis.
E) a buy class decision.

Question

Quizplus · Accepted Answer

The systematic appraisal of the design, quality, and performance requirements of a product to reduce purchasing costs is referred to as value analysis. Cost analysis focuses solely on determining the costs of a product, while a make-buy decision involves deciding whether to produce a product in-house or outsource it. Procurement analysis involves analyzing the entire procurement process. A buy class decision involves categorizing products based on their complexity and uniqueness.

Systematic Appraisal of the Design,quality,and Performance Requirements of a Product