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Purchasing Agent

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AVG. SALARY

$64,970

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EDUCATION

Bachelor's degree

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JOB OUTLOOK

Decreasing

Real-Life Activities

Real-Life Decision Making

Imagine you're the purchasing agent for a large food distributing company. Your business buys fruit and vegetables and sells them to successful restaurant chains. You want to buy produce for the best price you can, and then spend as little as possible having to store it in your warehouse.

One week you notice the price of potatoes is falling fast. By Thursday, you think the price is as low as it's going to get. That day, a wholesaler offers you a great bargain on eight loads of potatoes. That's a month's supply for your company. Usually, you buy enough for one week at a time.

You're not sure the savings are worth the cost of storing the potatoes. There is also the risk the price could fall lower, and you could be left with a lot of potatoes that cost you more than the market price.

What do you do? Buy the potatoes, gambling that the price is going to rise and leave you with potatoes you can offer at a competitive price to your clients? Or turn down the wholesaler's offer and ride out the market, continuing to buy one week at a time?

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.