What do you understand by the term codification? What type
of information should be built into a code?
Ans : Codification may
refer to:
- Codification (law), the process of forming a legal code
- Codification (linguistics), the process of standardising and developing a norm for a language in linguistics
- Accounting Standards Codification, the collection of US Generally Accepted Accounting Principles produced by the FASB
- NATO Codification System, the official program under which equipment components and parts of the military supply systems are uniformly named, described and classified
Purchasing, in a traditional definition, refers to the acquisition of a finished product. Buying raw materials to use in your plant is an example of purchasing.
Outsourcing refers to the acquisition of a service – paying another organization to carry out processes that you have defined but do not do yourself.
Consider this example: If the product that you sell for profit is made up of smaller, sub-products, you may acquire the ready-made sub-products or you may pay someone to custom-make the sub-product for you. Acquiring a ready-made product (as raw materials, for instance) is purchasing. Working with another organisation to custom-design and custom-build a product just for you (because you cannot do it or do not want to do it) is outsourcing.
Purchasing, in a traditional definition, refers to the acquisition of a finished product. Buying raw materials to use in your plant is an example of purchasing.
Outsourcing refers to the acquisition of a service – paying another organization to carry out processes that you have defined but do not do yourself.
Consider this example: If the product that you sell for profit is made up of smaller, sub-products, you may acquire the ready-made sub-products or you may pay someone to custom-make the sub-product for you. Acquiring a ready-made product (as raw materials, for instance) is purchasing. Working with another organisation to custom-design and custom-build a product just for you (because you cannot do it or do not want to do it) is outsourcing.
Outsourcing refers to the acquisition of a service – paying another organization to carry out processes that you have defined but do not do yourself.
Consider this example: If the product that you sell for profit is made up of smaller, sub-products, you may acquire the ready-made sub-products or you may pay someone to custom-make the sub-product for you. Acquiring a ready-made product (as raw materials, for instance) is purchasing. Working with another organisation to custom-design and custom-build a product just for you (because you cannot do it or do not want to do it) is outsourcing.
Consider this example: If the product that you sell for profit is made up of smaller, sub-products, you may acquire the ready-made sub-products or you may pay someone to custom-make the sub-product for you. Acquiring a ready-made product (as raw materials, for instance) is purchasing. Working with another organisation to custom-design and custom-build a product just for you (because you cannot do it or do not want to do it) is outsourcing.
Negotiation
Question. 4)Differentiate
between
a.
Purchasing and subcontracting
b.
Independent and dependent demand
c.
Competitive Bidding and Negotiation
Ans
:
a)
Purchasing and subcontracting
Purchasing, in the context of Clause 7.4 refers both
to purchasing and outsourcing – you pay another organization for the product or
services that you have bought from them. Purchasing, refers to an acquisition
through a buy/sell arrangement with a supplier.
b)
Independent and dependent demand
In general, the higher the price of a product, the
fewer units of that product produced and consumed, while the lower the price of
that product, the more units produced and consumed. The precise number produced
and consumed and the price at which this occurs depends on the interaction of
the demand and supply of that product -- demand being the number that consumers
are wiling to purchase at each price, and supply being the number that
producers are willing to produce at each price. Demand for a product that is
influenced by the demand for another product is called dependent demand.
Demand
Demand is the number of units of a specific product
that its consumers are willing to purchase at each price. As such, it can be
expressed as a mathematical equation. For example, if consumers are willing to
purchase 10 units of a product and two fewer units per $1 increase in price,
that can be written as Q = 10 - 2P, where Q is quantity and P is price.
Independent Demand
Although independent demand is called thus, it can
still be influenced by economic factors external to the demand-supply model
such as general consumer sentiment and consumers' available disposal income.
However, businesses that need to predict the number of products with independent
demand needed to sate their customers have it easier than businesses that must
calculate the demand for products with dependent demand because there are fewer
factors to consider.
Dependent Demand
Dependent demand means that demand for the product in question
is influenced by the demand for some other product. The demand for both
products can either move in tandem or in the opposite direction -- both
categories are counted as products with dependent demand. Producing estimates
based on a product with dependent demand is harder because the business must
also take into account how demand for its counterparts influences its demand
and how outside economic factors are likely to impact both products.
Substitutes and Complements
Both substitutes and complements are considered
products with dependent demand. Substitutes are products that can be used in
place of other products, like how beef and pork are substitutes for one
another. In contrast, complements are products that are used together, like
ketchup and hot dogs. They are considered products with dependent demand
because demand for one rises when demand for the other falls and vice versa,
while demand for complements changes in tandem.
c.
Competitive
Bidding and Negotiation
Transparent' procurement method in which bids from competing contractors, suppliers, or vendors are invited by openly advertising the scope, specifications, and terms and conditions of the proposed contract as well as the criteria by which the bids will be evaluated. Competitive
bidding aims at obtaining goods and services at the lowest prices by stimulating competition, and by preventing favoritism. In (1) open competitive bidding (also called open bidding), the sealed bids are opened in full view of all who may wish to witness the bid opening; in (2) closed competitive bidding (also called closed bidding), the sealed bids are opened in presence only of authorized personnel. See also competitive negotiation.
Negotiation is a method
by which people settle differences. It is a process by which compromise or
agreement is reached while avoiding argument.
In any disagreement,
individuals understandably aim to achieve the best possible outcome for their
position (or perhaps an organisation they represent). However, the
principles of fairness, seeking mutual benefit and maintaining a relationship
are the keys to a successful outcome.
Specific forms of negotiation
are used in many situations: international affairs, the legal system,
government, industrial disputes or domestic relationships as examples. However,
general negotiation skills can be learned and applied in a wide range of
activities. Negotiation skills can be of great benefit in resolving any
differences that arise between you and others
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