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HW 4 - concentrate on and what is vital This way suppliers...

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David Lum SCM 406W 2/11/08 Chapter 6 4. Items that would fall into transaction quadrant would be standard items, which would include items such as paper clips, Styrofoam cups, and paper. Items included in the bottleneck quadrant would be fuel, castings, and machine tools since they are few suppliers and quantity of those items. For leverage items, personal computers and printers since they are better to buy in long contracts due to the outdating. Strategic items would include computer chips and custom designed networks because they are unproven technology. 7. It is important because it will allow personnel within the company to know what to
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Unformatted text preview: concentrate on and what is vital. This way, suppliers can also be based on importance of what items are delivered and priorities can be set. It allows suppliers to know what is most important to the business so they can adjust accordingly. 9. It implies suppliers and purchasers are working together to coordinate what items and services are essential for upcoming plans. Also the purchaser and supplier each look internal to work better so that their external relationship can work efficiently as well. For the purchaser, they are looking for the best in suppliers to order to achieve the longer term agreements....
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