Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
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Question
Chapter 18, Problem 7DQ
Summary Introduction
To determine: Whether reverse auctions are controversial and whether a seller will participate in and a buyer would organize one.
Introduction: The reverse of a regular auction where sellers bid for the price of the product in spite of the buyer.
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Why do you believe that reverse auctions are so controversial? Why would youparticipate in one as a seller? Why would you organize one as a buyer?
What is the difference between Forward and Reverse auction?(please do not copy answers on the internet, thank you)
“Did the Austin wedding contract you were working on go out yet?” asked Tonya Roberts, the executive director of the downtown convention center operated by the city of Springdale.
“Yes, I mailed it to them yesterday after we talked about it,” replied Lara, the Center’s DOSM and revenue manager for space rental. “Why do you ask?”
“I just got off the phone with the mayor’s office. They want to hold a big fundraiser for his reelection campaign in the ballroom the same night the Austin wedding wanted to reserve it. The wedding was for 200 people right?” continued Tonya.
“That’s right. 200 people at about $150 a head; it’s a nice piece of business. About $30,000,” said Lara.
“Well the mayor expects 1,000 people, at $100 per person. And don’t forget, he’s the boss. We can’t hold both events. I need you to call the Austins and tell them you made a mistake. Tell them the room is already booked that night. They’ll need to find another space.”
What would you advise Lara to do if she asked you…
Chapter 18 Solutions
Purchasing and Supply Chain Management
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- How would you approach the sourcing of bed linens and terrycloth items? That is, would you use a reverse auction or request for proposal? Under what circumstances would you change suppliers?How would you approach the sourcing of bed linens and terrycloth items? That is, would you use a reverse auction or request for proposal? Under what circumstances would you change suppliers?arrow_forwardWhen is the optimal time to obtain prices on spares and service agreements? Why?arrow_forwardConsider a digital music service like Amazon or Apple. What are some of the major cost categories? Are they mostly fixed or mostly variable?arrow_forward
- What are blanket orders? How do they differ from in voiceless purchasing?arrow_forwardJoel Deaine, CEO of Deaine Enterprises Incorporated (DEI), is considering a special offer to manufacture a new line of women’s clothing for a large department store chain. DEI has specialized in designer women’s clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, DEI has not sold clothing to large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to DEI, and the order would be renewed automatically for two more years, presumably to continue after that point. Required: Explain two of the implementation tools covered in this chapter that Joel can use to implement his strategy.arrow_forwardJoel Deaine, CEO of Deaine Enterprises Incorporated (DEI), is considering a special offer to manufacture a new line of women’s clothing for a large department store chain. DEI has specialized in designer women’s clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, DEI has not sold clothing to large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to DEI, and the order would be renewed automatically for two more years, presumably to continue after that point. Required: Determine Joel’s competitive strategy (cost leadership or differentiation) and use this strategy to analyze the choice Joel faces.arrow_forward
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