Purchasing Supply chain management Module 4
activity 4.3 Chapter discussion questions
Chapter 9: Supplier Management and Development: Creating a World-Class Supply Base
2. Your young manager at the medium sized company where you work has just called you in and asked you to explain why the company should spend its limited financial resources to develop a supplier measurement system. What do you tell her?
6. Discuss the logic behind maintaining a reduced number for suppliers for each item?
12. A common statement in some supply management organizations is “we cannot be spending money on supplier development-we are not in business to train suppliers and do their job for them” What type of barrier does this statement represent? How would you respond to such a statement?
16. What are the advantages of circulating a supplier performance index? What are the challenges associated with developing a measurement system that uses SPI?
Chapter 10: Worldwide Sourcing
1. Discuss whether globalization and the subsequent growth in worldwide sourcing will have a positive or negative effect over the long run on the United States? Why? What are the alternatives of worldwide sourcing?
5. What are the advantages of establishing and international purchasing office? What services do these offices provide?
9. How does international purchasing and global sourcing differ? Do you think the differences are meaningful? Why?
12. What are the factors that drive successful global sourcing programs, what do you feel are the biggest obstacles to global sourcing?
Chapter 11: Strategic Cost Management
1. Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not?
6. Can you provide examples of suppliers or industries that are currently utilizing a price volume model, market share model competition pricing model and revenue pricing model?
10. What is the total cost of ownership concept? What are some of the challenges that must be overcome when implementing a total cost measurement system?
12. How is the price of an item established in a target-pricing contract? What makes target pricing attractive to a buyer and seller?
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