Question

An organization has a standing order with a supplier. the organization has ordered the same product in the same quantity monthly over the past year. the purchasing manager has decided to change suppliers in order to get a better price. the order the purchasing manager places with the new supplier is an example of a ________.

Answer 1

Answer:

Modified Rebuy.

Explanation:

Modified Rebuy can be defined as the desires of a buyer to re-purchase or reorder the products previously bought but with certain modifications either in prices, products, suppliers, or terms. The buyer may modify the current purchasing terms because he may not be satisfied with the supplier or may have some new requirements.

In the given case, the modification in supplier has been made by the organization to get a better price. Thus this is an example of modified rebuy.

So, the correct answer is modified rebuy.