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Chapter 2 - Purchasing decisions and business strategy. In chapter 2, a framework for linking purchasing decisions with the firm’s competitive strategy is presented. The framework offers a systematic approach for designing purchasing strategies consistent with a firm’s competitive strategy. Supply management can play a significant role in making a firm competitive.
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Chapter 3 - The legal aspects of purchasing. The legal aspects are presented in chapter 3. The purchasing professional in an organization must be able to understand the legal aspects of the purchasing function. The relationship between ethics and the law is complex.
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Chapter 4 - Materials management. Chapter 4 focuses on materials management in support of the transformation of raw materials and component parts into throughput (sales). The functions included in the materials management concept include materials planning and control, production scheduling, receiving, stores, traffic, disposal of scrap, quality control, and inventory control.
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Chapter 5 - Inventory management. Inventory management is presented in Chapter 5. Inventory is the life blood of any business. Most firms store thousands of different items. There are many inexpensive supply or operating type items. The type of business a firm is in will usually determine how much of the firm’s assets are invested in inventories.
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Chapter 6 - Just-in-time (lean) purchasing. Just-in-time (JIT) or lean purchasing is introduced in Chapter 6. The current shift toward the so-called “Lean Thinking” manufacturing environment is one of the major motivations for JIT purchasing. JIT has changed the role of purchasing from merely placing orders to investigating the supplier’s technical and process capabilities.
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Chapter 7 - Purchasing procedures, e-procurement, and systems contracting. This chapter focuses on purchasing procedures, e-purchasing, and systems contracting. Online or e-procurement technology has become an important part of purchasing and supply chain management and the rate of adoption has increased significantly.
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Chapter 8 - Supplier selection and evaluation. Supplier selection is addressed in Chapter 8. The selection of suppliers is a complex and demanding question that has no real correct answer. Each firm must weigh the benefits and risks of single and multiple sourcing.
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Strategic outsourcing is addressed in Chapter 9. Outsourcing is the complete transfer of a business process that has been traditionally operated and managed internally to an independently owned external service provider.
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The subject of Chapter 10 is global sourcing. As firms’ competition heats up, firms will become more global minded. To be a global firm, management must be able to critically evaluate foreign markets. In the current business environment, firms are beginning to develop global procurement strategies.
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Chapter 11 is entitled “Supply partnerships and supply chain power.” The intense coordination necessary for effective supply chain integration necessitates a reduced supplier base; where manufacturers were once producing products with thousands of suppliers, successful firms are now manufacturing better products with fewer suppliers.
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Chapter 12 is entitled “Total quality management (TQM) and purchasing.” Preliminary studies indicate that assembly time is roughly proportional to the number of parts assembled. It has been shown that the number of parts in a design can be decreased by 20–40 percent when engineers are told to design the product to minimize the number of parts.
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Chapter 13 - Price determination. Chapter 13 focuses on price determination, which is one of the most important decisions that successful organizations make. The purchasing professional must become an expert on the product or services for which they are responsible.
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Chapter 14 - Bargaining and negotiations. Chapter 14 examines the important human interactions called bargaining and negotiation in a business setting. Bargaining occurs between individuals, groups, organizations, and countries. In this chapter we considered bargaining between two parties, each possessing resources the other side desires.
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Chapter 15 - Purchasing transportation services. Chapter 15 provides an in-depth analysis of transportation costs. With JIT systems transportation costs are magnified. Some of the transportation costs include such activities as selecting the mode of transportation to be used in moving a particular shipment.
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Chapter 16 - Equipment acquisition and disposal. In chapter 16 a step-by-step capital acquisition process is given. The steps are based on requisition, company objectives, new product ideas, cash flow analysis, an economic evaluation, a financial plan analysis, and expenditure control.
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Chapter 17 - Health care purchasing and supply management. Chapter 17 is a special feature of the textbook. There are critical differences between the health care supply chain and industrial supply chain, such as the automotive supply chain. The focus of this chapter is on purchasing day-to-day supplies and capital equipment acquisition.
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Chapter 18 - Sourcing professional services. Chapter 18 focuses on sourcing professional services. The service sector has taken on an increasingly important role in the world economy. The service sector has become the engine of growth for the American economy, fundamental to the health and prosperity U.S. businesses, large, medium, or small.
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In this chapter, you will learn about: The different types of brand identification, their potential benefits & challenges, the importance of private-label merchandise in today’s marketplace, theories about the optimum breadth & depth of assortments,...
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In this chapter, you will learn about: How budgets are determined (& checked periodically) for a buying season or dept, stockturn & how to determine the productivity of the merchandise as an investment, staple stock controls, or how stores ensure their basics & best-sellers are always available,…
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In this chapter, you will learn about: SKU numbers, bar codes, & radio frequency identification; point-of-sale terminals & systems; electronic shelf labeling; quick response & efficient customer response; electronic data interchange & extensible markup language.
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In this chapter, you will learn about: Factors to consider in vendor selection, ethics & social responsibility in retail, how & why to reevaluate current vendors, types of vendors to choose from, how management policies impact vendor selection.
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In this chapter, you will learn about: The proliferation & importance of imported products, gray markets, consumer attitudes about american-made versus foreign-made goods, finding international vendors & intermediaries, shipping costs & getting goods through U.S. customs.
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In this chapter, you will learn about: Market locations & buying trips; selecting new items; how items fit into the store’s stock plans; buying job lots, irregulars & off-price merchandise; developing product specifications; environmental considerations.
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Lecture Management of retail buying – Chapter 10: Negotiating the buy. In this chapter, you will learn about: Price negotiation, types of discounts, the services included (or not) in a final price, shipping & insurance options, advertising & markdown allowances.
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Lecture Management of retail buying – Chapter 11: The buyer’s order and vendor relations. In this chapter, you will learn about: Order placement & accuracy, types of orders, follow-up & receipt of goods, typical vendor services, protecting yourself from unethical practices, retail education & regulation.
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In this chapter, you will learn about: Profit margin controls, calculating initial markup & required markup, determining profitability of a department or store, pricing individual items, price line structures, markdowns & closeouts, calculating profits, a retail buyer’s role in the selling process.
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Chapter 1 - Introduction to operations and supply chain management. This chapter includes contents: What operations and supply chain managers do, operations function, evolution of operations and supply chain management, globalization and competitiveness, operations, strategy and organization of the text, learning objectives for this course.
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Chapter 1 supplement - Decision analysis. In this chapter, you will learn about: Decision analysis, decision making without probabilities, decision analysis with excel, decision analysis with OM tools, decision making with probabilities, expected value of perfect information, sequential decision tree.
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Chapter 2 quality management. This chapter includes contents: What is quality? evolution of quality management, quality tools, TQM and QMS, focus of quality management – customers, role of employees in quality improvement,…
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Chapter 3 statistical process control. This chapter includes contents: Basics of statistical process control, control charts, control charts for attributes, control charts for variables, control chart patterns, SPC with excel and OM tools, process capability.
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