Welcome to today’s class!!
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In today’s Marketing class, we will be learning about Purchase, Supply And Merchandising of Goods
Purchase, Supply And Merchandising of Goods
In every well established business organization, there is a purchasing and supply unit or department, others address it as a procurement unit ,their functions center around purchasing and supplying the right quality and quantity of materials at the right time, and the right quantity from the source at the right place to the right place.
They also monitor market prices not only of the product’s materials purchased but also of significant raw materials used in their organization.
Equally, they monitor suppliers’ prices, provide information or imminent price changes, participate in organizational planning, policy and decision making, supply the company regularly with raw materials to avoid stoppage or product delay and allow continuity, maintaining sound cooperative relationships and developing staff policies, procedures for effective running of an organization.
When we talk about the supply, purchase and merchandising of goods, we must remember that as we have laws governing our school, community and the country, there are laws regulating these also.
The laws governing purchase and supply of goods and services are as follows:
(a) The higher the price, the lower the quantity purchase and the lower the price the higher the quantity purchase.
(b) The process of adjustment rests at the point where purchase equals supply.
(c) An increase in supply will lead to decrease in the market price and an increase in purchase.
(d) A decrease in supply will cause an increase and a fall in purchase.
(e) An increase in purchase will bring about an increase in price and a rise in supply.
(f) A decrease in supply may lead to a fall in price and a decrease in supply.
In summary, supply, purchase and merchandising of goods and services involves monitoring market prices not only of the product’s materials purchased but also of significant raw materials used in their organization.
Explain what you understand by Supply, Purchase and Merchandising of Goods.
What is a purchasing and supply unit also called?
Explain the laws governing the supply, purchase and merchandising of goods.
We hope you enjoyed today’s class. In our next class, we will be learning about Selling And Bargaining Skills.
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