Purchasing Mid-term cheatsheet

Purchasing Mid-term cheatsheet - Sellers Value:...

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Unformatted text preview: Sellers Value: NPs=(P-Cs)-Ts-Rb (NPs=Sellers net profit, P=Sales price, Cs= Cost to seller, Ts= Sellers transaction costs, Rb= Risk of the buyer proposes to seller.)The goal is to max NPs Buyers Value: NPb= (R-P)-Tb-Rs (NPb= Buyers net profit, R= sales revenue to buyer, P= price from seller, Tb= buyers transaction costs, Rs= Risk that seller proposes to buyer.) The goal is to max NPb Transaction costs to the buyer and seller are hidden. In buyer formula R&P are immediate cash. In seller formula P&Cs are immediate cash. The risk of the buyer and seller are uncertain. ISO 9000 Management System Standard is a standard that can be applied to suppliers. Breach of contract- A business contract creates certain obligations that are to be fulfilled by the people or companies who entered into the agreement. In the eyes of the law, a party's failure to fulfill an end of the bargain under a contract is known as a "breach" of the contract. Depending fulfill an end of the bargain under a contract is known as a "breach" of the contract....
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This note was uploaded on 05/27/2011 for the course SCMN 3730 taught by Professor Staff during the Fall '08 term at Auburn University.

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Purchasing Mid-term cheatsheet - Sellers Value:...

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