Which of the following is a goal for purchasing?

• A. Uninterrupted flow of materials/services at lowest total cost
• B. Increase inventory carrying costs
• C. Emphasize rapid product obsolescence
• D. Isolate sourcing to a single supplier

Answer: (A)

Purchasing aims to ensure an uninterrupted flow of materials and services while achieving the lowest total cost. In practice, that means selecting suppliers and negotiating terms in a way that prevents shortages and delays, while considering all costs over the life of the item—not just the purchase price. This includes transportation, quality, inspection, administrative costs, and the cost of carrying or expediting inventory. The emphasis is on reliability and overall efficiency across the supply chain, not simply minimizing price in isolation.

Increasing inventory carrying costs would raise total costs and tie up capital, not help the goal. Emphasizing rapid product obsolescence drives waste and higher replacement costs. Isolating sourcing to a single supplier can reduce some risks in the short term but increases the risk of disruption and undermines a steady, low-cost flow.