Principle Of Purchasing

Part 1

Question 1

You are the Chief Purchasing Officer of a company with World Wide Production and buying locations. Design an organizational structure that allows you to compete effectively. Describe the reporting structure, the physical placement of personnel, the placement of purchasing authority and the coordination of activities with other functional groups.

Question 2

Discuss the sources of Information available to a buyer when seeking information about potential sources of supply. When do you think it is appropriate to use different sources?

Question 3

Please Answer the following questions :

1)      Provide reasons why most firms do not have an adequate supplier measurements system.

2)      What is a full service supplier ? What are the benefits of using full –service suppliers?

3)      Of the barriers to supplier development mentioned in this chapter, which ones are the most difficult to overcome in you opinion?

4)      Why should a buyer be concerned with supplier quality performance?

5)      How can early supplier design involvement contribute to higher levels of product quality?

6)      What are the differences between TQM and Six sigma quality approaches?

Question 4

Please read the following case on  Air Products  and answer the questions at the end of the case. Please see attachment.

Question 5

Discuss whether the growth in worldwide sourcing will have a positive or negative effect over the long run in the United States. Why? What alternatives exist to world wide sourcing?

Question 6

Discuss why it is important for buyers to have knowledge of a supplier’s learning rate when preparing to negotiate a purchase contract.

Question 7

Please Read both cases and respond to the case questions. Please see attached.

Case 1: Supply Chain Management at Bose Corporation (see attachment)

Case 2: Strategic Sourcing and Supply at Federal Express (see attachment}

Question 8

Discuss concept of ethics and discuss the reasons why some issues that confront a buyer are not often clear from an ethical perspective.

Question 9

Please turn in any portion of your assignment. It does not have to be complete and it can be a draft. I am only looking to see your progress.

Part 2

Project – Term Paper

· Due the last day of class:

You have been hired as a purchasing/procurement Manager for a large US based automotive manufacturer. You have been assigned the responsibility of evaluating current supplier relationships and developing relationships with new supplier for automotive parts.

Go through the process, policy and procedures to evaluate current suppliers and select new suppliers. This should include:

1) Negotiations

2) Purchasing relationships

3) Purchasing strategies

4) Insourcing and outsourcing

5) Supplier quality management

6) Supplier evaluation, selection and measurements.

Give examples of some current best practices that are being used in the economy today to evaluate and manage suppliers.

Please use standard formatting for your paper and must be between 4 to 8 pages, double spaced. Please use reference where applicable.

 

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