799-301 Chapter 02 - 799:301: Chapter 2 Purchasing...

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799:301:Chapter 2PurchasingProcurement
WHAT IS SUPPLY CHAIN MANAGEMENTManagement, control, and flow of goods and servicesFrom _____ To _____Inception (Raw Materials) to End CustomerInvolves:Costs, Quality, Timing, Value, QuantityRequires:Visibility, Communication, Trust
REVIEW TERMINOLOGYPurchasing – ProductMerchantsversusIndustrial BuyersBulk Finished ProductRaw MaterialsRetail / WholesaleManufacturing / ConversionCapital ExpenseContracting - ServicesSupply Management - Expanded skills and responsibilitiesidentification,acquisition, access, positioning, and management of resourcesan organization needs or potentially needs in theattainment of its strategicobjectives.”NegotiationsLogisticsContract development and administrationInventory control and managementSupplier managementEtc.
Costs of Material as Percent of ShipmentTable 2.1 ExtractionYEAR|Value (Sales)|Cost of|Manufacture|Capital|Shipments|Material|Costs|Expenditure|Billions $|Billions $%|Billions $%|Billions $%||||2006|$5015.6|$2752.954.9%|$2285.945.6%|$135.82.7%||||1996|$3715.4|$1975.453.2%|$1749.647.1%|$146.53.9%||||1986|$2260.3|$1217.653.9%|$1035.445.8%|$80.83.6%||||1977|$1358.5|$782.457.6%|$585.243.1%|$51.93.8%Wal-MartCosts of Sales greater than 75% of Net Sales.
GOALS of PURCHASINGEnsure uninterrupted flow of materials at thelowest total cost, to improve the quality of thefinished goods produced and to optimizecustomer satisfaction.

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Term
Spring
Professor
goldsworthy
Tags
Supply Chain Management, Chapter 2, average inventory, avg inv oh

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