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1-2; 1-4; 1-5; 1-7
1. Why are more top managers recognizing the importance of purchasing/ supply management?
2. What is the difference between purchasing and supply management?
3. What is the difference between a supply chain orientation and supply chain management?
4. What is the difference between a supply chain and a value chain?
5. What are some of the factors that might influence how important purchasing
is to the success of an organization?
6. What impacts will technology have on supply base innovation and risk
management, and will technology allow supply managers to spend more time on these two areas? 2-1; 2-2
1. Discuss the concept of the internal customer. Who are purchasing’s internal customers?
2. What are the roles & responsibilities of purchasing?
3. Name five objectives of a typical purchasing organization? 5-1 5-6
According to exhibit 5.1 – NRG Supply Chain Organization – Top Level, under
the umbrella of scm, how many types of activity would p/sm be related into?
1. Defining the concepts of a centralized structure and a decentralized
structure? What factors would influence the Adoption of Centralized,
Center-Led, or Decentral-ized Structures?
2. Differentiate the advantages of Purcgasing centralized p/sm structure from decentralized p/sm structure.
3. Discuss the Position of Purchasing the Decentral-izational Structure 5.6 5.10
4. Describe the scope of p/sm job functions & tasks.
5. Differentiate the strategic purchasing & operational purchasing.
6. Define the term of “Cross-Functional Team -CFT”? What benefits do the
CFT provide for the organization?
7. Describe Future Trends in Organizational Design.
Reading chapter 3 (textbook), answer the following questions.
8. Briefly define the concept of policy & procedures
Why is it important to include a policy that outlines the origin and sc
authority? What might happen if such a policy did not exist?
9. Why should management periodically review its purchasing policies?
What are the potential consequences if management does not review procedures?
10.What are the benefits associated with a comprehensive policy and
procedures there a downside to the manual being too comprehensive?
11.Discuss the concept of ethics. Why is the purchasing profession particularly this topic?
12.What are the risks associated with backdoor (maverick) buying an
purchasing interested in controlling business practices?
Reading chapter 3 (textbook cont’d), answer the following questions.
1. How many stages are there in a typical purchasing process?
2. What is the difference between a purchase order and a blanket purchase order?
What are the advantages of using blanket purchase orders?
3. What is the definition of competitive bidding? What are the benefits of
competitive bidding? Why do some firms no longer rely only on competitive
bidding when awarding purchase contracts?
4. How many types of purchase are there in a typical business organization?
Discuss how the purchase of capital equipment differs from the purchase of routine supplies?
5. Why is purchasing becoming increasingly involved in the purchase of
transportation services and other non-traditional purchasing areas?
Reading chapter 4 (supplier evaluation & selection), answer the following questions.
1. Why do organizations commit the resources and time to evaluate suppliers
before making a supplier selection decision?
2. How many steps are there in the supplier evaluation & selection process? Briefly
discuss the objectives of each step?
3. Discuss why purchasers have both distributors and manufacturers in their supply base.
4. Discuss the various sources of information buyers can utilize when seeking potential sources of supply.
5. Which of the seven steps in the supplier evaluation and selection process do you
feel are the most challenging and why?
6. Discuss the pros and cons of sole, single, and multiple sourcing?
7. Assume you are the chief purchasing officer at a manufacturer of robotics
devices; discuss the types of risk that you need to manage in your supply base. Chapter 4 contd.
1. Why should a buyer be concerned with monitoring and managing supplier quality performance?
2. Describe some typical types of supplier measurement techniques?
3. What is the definition of a supply base? Discuss the advantages and
disadvantages of an optimized supply base. How can a buyer overcome the disadvantages?
4. Discuss the logic behind maintaining a reduced number of suppliers for each
item? What would be the possible risks of maintaining fewer suppliers?
5. How many stages are there in a typical process map for supplier development?
Briefly discuss the purpose of each stage?
6. Discuss the different types of supplier development and support that a firm can
offer. Which are the most common? Why?
7. Discuss the types of barriers that interfere an effective supplier development
process? How would a firm be able to overcome these barriers? Reading chapter 5
1. What are the risks to buyers associated with each of the different types of
contracts (fixed-price, incentive, and cost-based contracts)?
2. What are the risks to suppliers associated with each of the different types of
contracts (fixed-price, incentive, and cost-based contracts)?
3. Suppose you are a purchase manager who is the contract administrator for a
manufacturing firm servicing a catering bundle for YEP (Year-End-Party) event.
What are some of the key elements that you would wish to include in the contract
with the catering company implementing this service?
4. Under what conditions are short-term contracts preferable to long-term contracts?
5. What are the dangers associated with taking an old contract and merely
changing the name of the supplier for use in a new, three-year contract with a different supplier?
6. What are the different venues available for arbitration settlements? Chapter 5 contd.
Reading chapter 5 (purchasing ethics & CSR), answer the following questions.
1. Discuss the concept of ethics. Why is the purchasing profession particularly sensitive to this topic?
2. What is the purpose of a professional code of purchasing ethics?
3. Why is it important for a firm to have a written ethics policy? What is the
importance of top management’s commitment to the policy?
4. Discuss the concepts of CSR? Why is the purchasing profession particularly sensitive to this topic?
5. Discuss why you would be more interested in working for an organization that
supports environmentally friendly policies. Are there any negatives to working for
an environmentally friendly organization?