Question

Under what conditions should a retailer consider using a centralized buying organization? A decentralized buying organization? A resident buying office? Cooperative buying?

Answer 1

A retailer must opt for a centralised buying organisation when the requirement is high and must be distributed among several branches. When the requirment is less and varies from branch to branch it is better if the retailer opts for decentralised buying organisation . When there are many sources for the same product and also there are a number of competitors for the retailer it is better if they appraoch a resident buying office so that they will be guided to the right product. When the retailer needs theproduct at low price it is better they opt for a cooperative buyer so that they can come to an understanding of the prices.