suppychain cases

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Brief Contents
Preface

xiv

About the Author
Note to Students

10 Global Sourcing

215

11 Supply Partnerships and Supply
Chain Power 237

xxiii
xxiv

PART ONE

12 Total Quality Management (TQM)
and Purchasing 261

Introduction to Purchasing and Supply
Chain Management 1

PART FOUR

1

Purchasing and Supply Chain
Management 3

2

Purchasing Decisions and Business
Strategy 25

3

The Legal Aspects of Purchasing

51

Materials Management

69

5

Inventory Management

85

6

Just-in-Time (Lean) Purchasing

14 Bargaining and Negotiations

117

Fundamentals of Purchasing and Supply
Chain Management 137
Purchasing Procedures,
E-Procurement, and Systems
Contracting 139

8

Supplier Selection and
Evaluation 167

9

Strategic Outsourcing

PART FIVE
347

17 Health Care Purchasing and Supply
Management 395
18 Sourcing Professional Services

CASES

445

PURCHASING GLOSSARY
INDEX

197

327

16 Equipment Acquisition and
Disposal 369

PART THREE

vi

287

15 Purchasing Transportation
Services 349

67

4

7

13 Price Determination

Special Purchasing Applications

PART TWO
Materials Management

Price/Cost Analysis and Negotiation
Strategies 285

559

549

419

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Contents
Preface

xiv

About the Author
Note to Students

xxiii
xxiv

PART ONE
INTRODUCTION TO PURCHASING
AND SUPPLY CHAIN
MANAGEMENT 1
Chapter 1
Purchasing and Supply Chain
Management 3
Introduction 3
Purchasing Managers, Buyers, and Purchasing
Agents 4
The Evolution of the Purchasing and Supply
Management Function 5
The Supply Management Process 6
Purchasing Dollar Responsibility 9
Potential for Profit 10
Integrated Supply Management (ISM) 11
Annual Inventory-Ordering-Transportation
Costs 13
Organizing for Purchasing 14
Centralized versus Decentralized
Purchasing 14
Advantages of Centralized Purchasing 15
Disadvantages of Centralized Purchasing 15
Advantages of Decentralized Purchasing 15
Disadvantages of Decentralized Purchasing 16
Centralized/Decentralized Hybrid
Purchasing Systems 16

The Future Organization Concept 16
Reporting Assignment 17
The Supply Management Concept 17
Careers in Purchasing 18
Professionalism and Purchasing and
Supply Management 20
The Institute of Supply Management
Excellence Award 21
Summary 23

Discussion Questions
Suggested Cases 24
Reference 24

23

Chapter 2
Purchasing Decisions and Business
Strategy 25
Introduction

25

Purchasing and Competitive Strategy Linkage

Competitive Strategy 27
Competitive Priorities 28
Purchasing Criteria 29
Supply Chain Strategy 29
Supply Chain Relationship Quality

26

31

Supply Chain Relationship Quality Indexing Example 32

The Integrated Buying Model

35

Cost 36
Quality Level 36
Lead Time 36
Constraints 37

The Strategic Sourcing Plan

37

Developing a Strategic Sourcing Plan
Program Objectives by Phase 39

37

Purchasing Strategy Trends 39
Summary 42
Discussion Questions 43
Suggested Cases 43
References 43
Appendix A: Supply Chain Relationship Quality
Study 44

Chapter 3
The Legal Aspects of Purchasing

51

Introduction 51
Authority of the Purchasing Manager 52
Execution of Contracts and Purchase Orders
by the Purchasing Manager 53
Essentials of a Purchase Contract 54
The Requirements for a Contract 54
Offers 55
Invitation to Do Business 55
Counteroffers 56
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Contents

The Time Limits of an Offer
Firm Offers 57
Option Contracts 57
Bid Bonds 58
Promissory Estoppels 58
Oral Contracts 58
Terms of a Contract 58
Quantity 58
Quality 59
Price and Credit Terms
Delivery Terms 59
Leasing 59

Flexibility 76...
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