devry GSCM540 midterm 2016

Page 1

Question 1. 1. (TCO 1) Today’s business environment calls for purchasing managers to be more tightly integrated into the overall strategic decision-making process of the firm. However, there are a number of challenges involved in doing that effectively. Explain what is meant by an integrated approach to sourcing, and discuss some of the challenges that a purchasing manager needs to overcome to successfully accomplish that. (Points : 20)

Spellchecker

Question 2. 2. (TCO 2) In an integrated approach to sourcing we now see procurement more widely accepted as a profession. How will this function evolve over the next decade? What will the objectives be other than reducing price of materials and services? (Points : 25)

Spellchecker

Question 3. 3. (TCO 3) Procurement is responsible for sourcing goods and services for the organization. While doing so, their obligation to the company is to make the best decision. Quality becomes an order qualifier so pricing is only second to quality. So what is a buyer looking for in terms of quality when they are making a sourcing decision? (Points : 20)

Spellchecker

Question 4. 4. (TCO 4) Although EOQ is a useful model for determining inventory requirements, it doesn’t adjust for variable demand situations. Describe three variable lot-sizing models and explain how they differ from EOQ. (Points : 20)

Spellchecker

Question 5. 5. (TCO 4) Identify two challenges associated with the implementation of just-in-time purchasing and explain why they are difficult to overcome. (Points : 20)

Spellchecker

Question 6. 6. (TCO 5) Explain what e-procurement is, and describe two different technologies that fall under that category. (Points : 20)

Spellchecker

Question 7. 7. (TCO 5) Why do firms classify their suppliers into categories such as strategic, preferred, and transactional? What types of considerations need to go into deciding where a given vendor falls? (Points : 25)

Spellchecker