Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134111056
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 14, Problem 2DQ
Summary Introduction

Interpretation: The impact of two opposing directives on supplier relationships and hence on supplier management should be concluded.

Concept Introduction: The orientation of supply chain management can be looked at in two ways viz. competitive and cooperative orientation. The competitive orientation seeks to win over the other party (the supplier). This can be equated to a win-lose situation. The cooperative orientation, on the other hand seeks the cooperation of both parties like a win-win situation.

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Chrysler and General Motors vigorously compete with each other in many automobile and truck markets. When Jose Ignacio Lopez was vice president of purchasing for GM, he made it clear that his buyers were not to accept luncheon invitations from suppliers. Thomas Stalcamp, head of purchasing for Chrysler at the time, instructed his buyers to take suppliers to lunch. Rationalize these two directives in light of supplier relations and the impact on supply chain management.
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