Purchasing Method: Open Market Buying Explained
The described purchasing method involves detailing the exact specifications for the required equipment. Potential sellers are then invited to submit their price offers (quotations) after the specifications are advertised publicly, often in daily newspapers or specialized trade journals.
Identifying Open Market Buying
This strategy is termed Open Market Buying because it actively seeks offers from the broader marketplace. By advertising the specific needs, the organization aims to reach numerous sellers and encourage competitive pricing.
Key Steps in the Process
- Define detailed equipment specifications.
- Advertise these specifications and invite quotations in public media (dailies, trade journals).
- Evaluate submitted quotations from interested sellers.
Comparison with Other Methods
This differs from negotiated buying, where discussions occur directly with one or a few selected suppliers. It also differs from auction buying, where goods are sold to the highest bidder. While similar to formal competitive bidding, "Open market buying" emphasizes utilizing the general availability and competition within the market through broad advertising.
Important Questions from Business Management and Human Resource Management
- The Contingency approach is also known as ________
- Due to the fibrous surface, threads made from spun yarn possess following properties :
(A) Highly elastic properties
(B) Good sewing performance
(C) Good dimensional stability
(D) Good stitch locking properties
Choose the correct answer from the options given below : - Types of belts included under "Tie Belt" category :
(A) Spaghetti
(B) Straight tie ups
(C) Bias belt
(D) Contour belt
(E) Rever belt
Choose the correct answer from the options given below : - Match List - I with List - II.
List - I List - II (Novelty Yarn) (Structure) (A) Flock Yarn (I) Short thick pile yarn with soft velvety appearance (B) Chenille Yarn (II) Single yarn in which small tufts of fibers are inserted at regular intervals. (C) Core-spun Yarn (III) Base is heavy and coarse yarn. The effect yarn is curled up around the base and is held by the binder yarn. (D) Loop Yarn (IV) Base yarn is completely covered or wrapped by another yarn
Choose the correct answer from the options given below : - Match List - I with List - II.
List - I List - II (Types of pockets) (Characteristics) (A) Flap pocket (I) The opening is visible like a slot and can be finished with a rectangular piece of fabric standing upwards from the pocket edge. (B) Welt pocket (II) The opening is covered with flap, which can be left open or buttoned down (C) Bound pocket (III) It is applied on the face (right) side of the garment and can be made in any number of shapes (D) Patch pocket (IV) It looks similar to a large bound button hole with two pleats of fabric meeting at the centre of the opening.
Choose the correct answer from the options given below :
