The establishment and organization of purchases department will depend mostly on the size and nature of big concerns, where generally the volume of purchase is larger, the articles purchased are of various types, and designs, technical and export knowledge is essential on the part of buyers, the price is changing nature etc, a separate and an independent purchasing department is established. But when the concern is small and separated establishment of purchasing in not economically justified,the function of purchasing is either attached with sales or manufacturing department. When the merchandise is purchased with a view to resell them, purchasing may be placed with the seller.
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