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Chapter 8 Producing Quality Goods & Services (QUALITY CONTROL…
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purchasing
Purchasing – all the activities involved in obtaining required materials, supplies, components, and parts from other firms
Example: Levi Strauss must purchase denim cloth, thread, and zippers before it can produce a single pair of jeans.
The objective of purchasing is to ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.
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-Services are intangible, and it is therefore more difficult to evaluate customer satisfaction
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