Deciphering budgets for purchasing is an important initial step for a busy company to allocate funds and resources. In this activity, you will reflect on your own personal budgeting and selection. What we purchase along with from where we buy things are essential for cash flow efficiency (and perhaps the survival of a company, especially for a start-up)

· Look at your own expenses for the last two months: Choose 10 budget categories that best fit your current situation (e.g., housing, transportation, utilities, health, insurance, child care and so forth – whatever is most appropriate for you).

· Write out a budget, including these categories, aligning and allocate the expenses accordingly.

· Then, choose one category that has the most possible suppliers/vendors.

· Write a list of possible suppliers/vendors for the suppliers for that category.

· Do an analysis of that category comparing the different suppliers/vendors (e.g., compare total costs, availability, cost of storage, cost of transportation [e.g., shipping costs and costs to pick up, which include fuel AND time] cost of convenience, opportunity costs, and so forth)

· In just a couple of sentences, justify why you chose the supplier you use.

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