OPERATIONS MANAGEMENT LL PACKAGE
OPERATIONS MANAGEMENT LL PACKAGE
11th Edition
ISBN: 9781323592632
Author: KRAJEWSKI
Publisher: Pearson Custom Publishing
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Chapter 14, Problem 2C
Summary Introduction

Interpretation: Difference between the purchasing policies and procedures should be concluded as the dealerships purchase different types of service parts ad materials.

Concept Introduction: Any company’s supply chain is required to cater to the entire range of products and services required by the company. There are likely to be variations in the types of products and even services. The type of suppliers and the arrangements with suppliers have to be, essentially, suitable for each individual product/service depending on the type of requirements as well as the specific supply chain available in the market for such product/service. Thus, the organization needs to build flexibility and variations in its supply chain management.    

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How might purchasing policies and procedures differ as the dealerships purchase different types of service parts and materials (for example, lubricants versus genuine GM parts)?
Five years ago it cost Bernie’s Bikes Inc. about $52 dollars to build a single bike. Today, it only costs the company about $31 because they have automated the process and are able to purchase component parts in larger quantities.What allowed the company to reduce the price to build a bike?   A. trade deficit   B. product differentiation   C. trade surplus   D. economies of scale
Please answer these question: 1. A standard purchase order is a document that buyers use to communicate the need with suppliers A. False B. True 2. Modern companies use electronic purchasing because it is - A. Cheaper B. Saves time C. More efficient. D. A reduction in overhead costs in the purchasing area. 3. Which statement is the most accurate? A. Purchasing staff are responsible for buying all goods B. Spot buying is some times used. C. Manufacturing staff may ask for certain types of material D. In big companies the three choices are possible purchase
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