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Supplier Selection

A supplier rating list is made by some companies

based on relative importance given to a select set

of attributes.

For routine order products the factors are : price,

supplier reputation, delivery .

For procedural problem products such as copiers the

important attributes are : technical service, supplier

flexibility, reliability and price

For political problem products such as choice of a

set of computers the factors are price, reputation,

reliability and flexibility

One way to encounter price factor from supplier side

is to talk of total cost of product or life cycle cost.

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