Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 9, Problem 23P

a.

Summary Introduction

Interpretation:

The spending category that has been identified as a priority and the supplier organization is most promising candidate.

Concept Introduction:

Supplier positioning matrix classifies each spending categories based on annual expense and supply vulnerability. In a supplier positioning matrix spend categories with high cost and high risk are dubbed as strategic critical.

b.

Summary Introduction

Interpretation:

The spend category that should be viewed as tactical decision and the purchase contract that should be awarded to the lowest cost bid through competitive bidding.

Concept Introduction:

Supplier positioning matrix classifies each spending categories based on annual expense and supply vulnerability. In a supplier positioning matrix spend categories with high cost and high risk are dubbed as strategic critical.

c.

Summary Introduction

Interpretation:

The supplier that would be willing to offer lower price and the supplier that would see the SW food Bank’s purchasing contract as nuisance.

Concept Introduction:

A supplier preference model places the suppliers on matrix based on supplier’s view on attractiveness of contract and value of business for supplier. Here purchasing manager considers how much the organization’s contract is valuable to the supplier.

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