Abstract

The progressive removal of trade barriers coupled with improved international communications, transportation and logistics offer increasing scope for procurement on global markets; on the other hand, use of JIT policies for procurement and production drive towards the greater use of local suppliers. The international purchasing decision is examined in cases where the vendor location has changed and a model is presented to identify those items which can beneficially be procured from abroad and those which are best obtained locally. The model is then applied to a number of items and some broad guidelines are proposed for selecting appropriate procurement strategies.

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