Which of the following acronyms can help her identify limits before engaging in the negotiation?

A procurement professional is preparing for anegotiation with supplier. She is setting targets for price which her company is seeking to achieve .

Which of the following acronyms can help her identify limits before engaging in the negotiation?
A . MIL
B . RAQSCI
C . TIMWOOD
D . PPCA

View Answer

Answer: A

Explanation:

MIL criteria indicate 3 limits that negotiator should establish:

M – Must achieve: minimum target/maximum you can concede on this point; the mandatory

requirement or fall back position

I – Intend to achieve: realistic target you are aiming for on this point

L C Like to achieve: stretch target to achieve on this point.

PPCA is purchase cost analysis

TIMWOOD indicates 7 types of waste in Lean principles

The RAQSCI model is a mnemonic summary of a business model used to define and structure business requirements