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Chapter 1 Introduction To Supply Chain Management 17

  • September 17, 2022
  • 7:10 am
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1. The
influence of corporate sourcing decisions interacts with internal design,
production, finance, marketing, and accounting.

2. Purchasing
departments can be seen as a primary designer and facilitator of important
inward- and outward-facing sourcing policies.

3. Generally
speaking, there are two approaches to deciding whether or not an action is
ethical, utilitarianism and rights and duties.

4. While
paperless transactions are now possible through e-procurement and Web-based
services, these would NOT be considered sustainable business practices.

5. While
a manufacturer may have substantial influence over its first tier suppliers,
their influence over second and third tier suppliers is typically much higher.

6. According
to the textbook, Wal-Mart is perhaps the company that is most averse to
implementing sustainable business practices.

7. Retail
items, which would likely be found at a store like Target or Wal-Mart, like
lamps, blankets, microwave ovens, and candy bars would be classified as
functional products.

8. “Rationalizing
the supplier base” would mean that the purchasing firm is attempting to
reduce the number of suppliers in its supplier network by eliminating poor
performing suppliers in its present supplier base.

9. Because
internationally recognized certifications like ISO 9000 are becoming so common
among suppliers, it is becoming more important that purchasing firms develop
internal certification programs that are geared toward the specific needs of
the purchasing organization.

10. The
average annual Purchase spend as a percentage of sales has been declining over
the years.

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