The manufacturing companies always need supplies in raw materials - bridging between demand and supply for spare parts and services from the suppliers. Purchase Planning is a necessary process in Inventory management software, where the purchase manager is responsible for all the requisition related to stock in warehouses. The major issues involved during the purchasing procedure is source, price, quantity, quality, time bound and location. If the purchasing task is pursued, then inventory is not limited. But if not pursued properly, then the company's survival is difficult. Planning typically takes place as a component of the budgeting process, where the inventory needed to operate the business properly and to control the cost of the goods with suppliers.

Question - Evaluate the different types of purchases contracts made by organisations. (15)