Differentiate between centralised and decentralised systems of purchasing stationery. Compare their relative merits and demerits. Which method will you adopt for a big organisation whose branches are located in different cities?

Centralized Purchase refers to purchasing all the requirements under the central point of the organization. Likewise, Decentralized Purchase refers to the purchasing of requirements of each production center in an organization.

Centralization and Decentralization are the two types of structures, that can find in the organization, government, management, and even in purchasing. Centralization of authority means the power of planning and decision making are exclusively in the hands of top management. It alludes to the concentration of all the powers at the apex level. On the other hand, Decentralization refers to the dissemination of powers by the top management to the middle or low-level management. It is the delegation of authority, at all levels of management.

 Centralized purchasing:-

Under centralized purchasing purchases are made at one central point for the whole organization and material is issued to respective departments or jobs as and when needed. Also, Centralized purchasing is suitable in cases where the organization runs _________ ___ _________ _____ ________ ____ ___.
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