Exam 1: Introduction to Purchasing and Supply Chain Management

Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups.

There is a definitive and prescriptive set of supply chain measures that results in one best way to measure supply chain performance and applies to all supply chains.

____ seeks to improve forecast accuracy,optimize production scheduling,reduce working capital costs,shorten cycle times,cut transportation costs,and improve customer service; while ____ helps obtain materials and manage physical flows from suppliers through downstream distribution to ensure that customers receive the right products at the right location,time,and cost.

Organizational design is much more than a series of lines and boxes across a chart.

Sophisticated customers,both industrial and consumer,no longer talk about price increases; they demand price reductions.

The traditional approach to purchasing and supply management is to build relations with suppliers to jointly pull costs out of the product or service and expect suppliers to contribute innovate ideas that continually add value to a firm's products and services.