... participate by
providing access for small, disadvantaged, and minority-
owned businesses.
19- 1
Chapter 19
Ethics and Social
Responsibilities
19- 20
10. Personal Purchases for Employees
•
Discourage ... prices.
19- 2
Key Concepts
•
Ethics Defined
•
Ethics in the Supply Management Context
•
Professional Purchasing and Supply Management Ethics
•
Principles and Standa...
...
21-10
Strategic Demand Management
•
Demand Management seeks to estimate, control,
smooth, coordinate, balance, and influence the
demand and supply for a firm’s products and
services.
•
Demand Management ... months)
Master
Schedule
(1-12 months)
DEMAND
MANAGEMENT
SUPPLYING FIRM
B
U
Y
I
N
G
F
I
R
M
Demand
Forecasting
DEMAND
MANAGEMENT
Research
and
Technology
Future
Customer
Deman...
... inspection
•
Market Price
»
Price equals interaction of many buyers and
sellers
»
Supply and demand establish prices
14 -19
Chapter 14
Price and Cost
Analysis
14-1
Internet / e-Procurement
•
Advanced ... nonstandard items and
services
14-23
Cost Analysis Defined
•
Cost analysis is a review and an
evaluation of actual or anticipated costs
»
It involves the application of ex...
... Solicitation
•
IFB
•
RFP
•
Item description
•
Info on quantities
•
Delivery schedules
•
Special terms and conditions
•
Standard terms and conditions
11-16
Weighted Factor Analysis
•
Steps to developing
»
Develop factors ... of life at many
proactive firms and a requirement for WCSM
11-21
ESI Opportunities
•
Materials
•
Services
•
Technology
•
Specifications and Tolerances
•
Standard...
...
assembly?
•
Is demand for the product fairly stable?
•
Are specifications and drawings clear and well
defined?
•
Is technology not available domestically at a
competitive price and quality?
12-13
Supply ... Technology
•
Broader Supply Base
•
Expanded Customer Base
12-11
Potential Problems
•
Cultural Issues
•
Long lead times
•
Additional Inventories
•
Lower Quality
•
Social and La...
... Networks
13-16
Service and Retail Providers
•
Understanding what drives the cost of overhead expenditures is crucial to any
service business
•
Revenue must cover the direct costs, material and labor, and overhead ... accumulating cost for a given cost
object that represents the total and true economic resources required or consumed
by the object
13 -19
Chapter 13
Total Cost of O...
... uncertainty exists as in the prospective, but
the amount of the contract is small and/ or the
performance period is short
15 -19
Chapter 15
Methods of
Compensation
15-1
Incentive Arrangements
•
Used to ... index for materials in a
product
•
Select labor rate indexes by type and location
•
Define energy indexes by fuel type and location
•
Analyze the past history of each index ver...
... expense
16 -19
Non-Cost Objectives
•
All technical aspects of the purchase
•
Types of materials and substitutes
•
Buyer‑furnished material and equipment
•
The mode of transportation
•
Warranty terms and ... discount provisions)
•
Liability for claims and damage
•
F.O.B. point
•
General terms and conditions
•
Details on how a service is to be performed
16-1
Chapter 16
Negotiation...
... material quantity,
price, delivery, and so on must be specific
enough to bind both the buyer’s firm and
the supplier to definable levels of
performance
17 -19
Competent Parties
•
A valid contract ... entirely void
or voidable
17-1
Chapter 17
Contract
Formation and
Legal Issues
17-20
Legality of Purpose
•
A contract whose purpose is illegal is
automatically illegal and void...
... adjusted using its overall ratio
7. Adjusted prices are then used in supplier evaluation
18 -19
Chapter 18
Contract and
Relationship
Management
18-1
Cost Ratio Plan Example
•
Assume that for one supplier:
»
Quality ... relationship benefits both parties
•
One- or two-page memoranda of agreement
replace lengthy contracts, change orders, and
other legalistic and defensive procedure...