The graphic figure on the next page is a model of a productflow in an international notation. The first component of this figure means the acceptation of goods and materials which are bought, the second component is the storage of these goods. The impulse of buying can be formed on a historic base, or a well known and already settled traject, just as well as your marketing management. Also it is possible that financial or social motives can be evident for a decision in this area. It is less necessary to change the method of buying if there is enough confidence in delivery and suppliers in the past and future. In a pure financial approach the only important fact is the price of goods, for which you can calculate a RATIO to assemble a "hitlist" by the formulae :
| GENERAL LOWEST PRICE / DELIVERY PRICE * 100 = 'VENDOR RATING' |
| / = divided by next value * = multiply with the next value |
example:
| supplier A : price $24,50 VENDORRATE: $22,25 / 24,50 * 100 = 91.8 |
| supplier B : price $22,25 VENDORRATE : $ 22,25 / 22,25 * 100 = 100 |
| supplier C : price $25,75 VENDORRATE : $22,25 / 25,75 * 100 = 86.40 |
This 'hitlist' shows the alternatives in a wink of an eye if a supplier
can't deliver on time, in this situation supplier A if supplier B can't
deliver. This is an international standard for pricerating , just as well
as the presented scemenotation in the following graphic models on the next
page. The upper diagram shows the documentary- as well as the productflow
by
an incoming delivery. After the receive of an
orderconfirm(1)
the
supply of material shall be controlled for his quality (2),
and in case if everything is all right, an receptionattest shall be returned
to the furnisher. INTERNAL goes a confirm (3)
to the department of
buying with the amount and date of delivery
of goods, accepted by the section intern material storage
(4). In case if this section receives a productorderamount (5)
from the section productorder, a mathematical difference between buying-
and produce-ordersection can be calculated to show the amount of materialsupply
which is been storaged.