Ranjit is purchasing a large piece of laboratory equipment which is brand new to the...

Comprehensive and Detailed Explanation (paraphrased from CIPS L4M2 content)

CIPS uses the classic buying situation model:

New buy – first time the item is purchased; high information need and perceived risk.

Straight re-buy – routine repurchase of a product that has been bought before and is well-known.

Modified re-buy – a repeat purchase with some changes (e.g. spec, price, supplier).

Here, the equipment is brand new to market, meaning:

It has not been purchased before by the organisation.

There is no previous sourcing history for this specific product, so it cannot be a straight re-buy.

Thus:

Option D is correct – it is not a straight re-buy because it has not been specified or sourced before.

Option A is incorrect – even if the supplier has been used before, the product is new.

Option B – there cannot be an “existing specification” for something new to the market; if there is, it would be a modified or straight re-buy, not a new product situation.

Option C – a standing purchase agreement would imply established purchasing arrangements: that contradicts “brand new to market”.

Relevant CIPS L4M2 areas:

Buying situations: new buy, straight re-buy, modified re-buy

Implications for information gathering, evaluation and risk

How new products affect sourcing and market management