In other words quality means the useful value of a

• In other words quality means the useful value of a specific
thing for a specific purpose to fulfill.

Purchasing Principle # 2. Right Quantity:
• The purchaser must buy the materials in the right quantity to
ensure that there is no stoppage of production or no extra
stock piling.
• Normally, the inventory control wing of purchase (stores)
department, fixes up the economic order quantity (EOQ),
• i.e., the quantity which should be purchased at a time to get
the maximum benefit at minimum total cost.

Purchasing Principle # 3. Right Price:
• It is not easy to determine the right price of material.
• However, through cost and value analyses one can guess what
an item should cost.
• Thereafter, the purchaser’s negotiation skill, his relations with
the supplier and the nature of competition in the market will
together determine the actual purchase price

Purchasing Principle # 4. Right Source:
• Right source means the source which is reliable in all respect such
as quality, delivery, after sales service, etc.
• It is obvious that when all the other things have been done right
(i.e., selection of right quality, quantity and prices), the source of
supply from where the materials have been obtained should be
automatically right.
• However, there are cases where anomaly occurs and it is,
therefore, necessary to get the materials from the right source.

Purchasing Principle # 5. Right Time:
• Just as one has to buy the materials in the right quantity, he must
also obtain them exactly when required.
• The delivery timings are again fixed by the stock control department.
It is the primary duty of the purchase department to follow up the
orders and to ensure that the flow of materials remains unchanged.
• It should also be seen that the materials are delivered exactly on
time. This function is very important in India as the suppliers often
fail to maintain the delivery schedule.

Purchasing Principle # 6. Right Place (of Delivery):
• The function of purchase department is not over until the materials
are delivered at the right place.
• Therefore, this also becomes a primary function of the purchase
department.
• Suppose the go down of the purchase department is in Calcutta’s
Taratala area and the material is booked to Howrah railway station.
• It must be ensured that the materials are cleared from Howrah and
delivered to the go down.

Vendor evaluation :
is a system for recording and ranking the performance of
a supplier in terms of a variety of issues, which may include
delivery performance and the quality of the items.

• Inventory management is a component of supply
chain management that involves supervising non-capitalized
assets, or inventory , and stock items.
• Specifically, “ inventory management supervises the flow of
goods from manufacturers to warehouses and from these
facilities to point of sale.

• Critical appraisal involving examination, measurement, testing,
gauging, and comparison of materials or items.