Centralized and Decentralized Buying

Centralized and Decentralized Purchasing

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Multiple Choice

Which best describes centralized buying?

• Each chain store purchases for themselves.

• Two chain stores purchase together.

• Distribution centers purchases for all chain locations.

• Each chain store only has 1 buying manager at that location.

Open Ended

Name 3 advantages to centralized buying.

Disadvantages to Centralized Buying

Open Ended

Name 3 disadvantages to centralized buying.

Multiple Choice

Which best describes decentralized buying?

• Distribution centers make purchases for all chain locations.

• The company only has 1 distribution center.

• Two chain stores purchase together.

• Each location can make its own purchases

Open Ended

Name 3 advantages to decentralized buying.

Disadvantages to Decentralized Buying

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Open Ended

Name 3 disadvantages to decentralized buying.

Open Ended

Name 3 things to consider when choosing centralized or decentralized purchasing.

Open Ended

You own your own chain store company. Choose centralized or decentralized buying. Write 3 sentences as to why you chose that purchasing format.