The Area being Modelled is :-
Procurement
This is an extract from the Wikipedia entry for Procurement.
"Procurement is the process of finding, agreeing terms and acquiring goods, services or works from an external source, often via a tendering or
competitive bidding process.
The process is used to ensure the buyer receives goods, services or works at the best possible price, when aspects such as quality, quantity, time, and
location are compared.
Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing risk, such as exposure
to fraud and collusion.
Almost all purchasing decisions include factors such as delivery and handling, marginal benefit, and price fluctuations. Procurement generally involves making
buying decisions under conditions of scarcity.
If good data is available, it is good practice to make use of economic analysis methods such as cost-benefit analysis or cost-utility analysis.
An important distinction should be made between analyses without risk and those with risk. Where risk is involved, either in the costs or the benefits, the
concept of best value should be employed."
