Purchases can be generically classified in: Raw Materials, Semi-finished products and components, Finished Products, MROs, Production Support Items, Services, Capital Equipment and Transportation. In

1. Briefly explain each one
2. In what type of purchase the Total Cost of Ownership (TCO) has more impact and why?
3. Explain with generic examples what other costs should be considered in the TCO.
4. Explain the differences between purchasing Capital equipment versus other generic types of purchases.