HW 11 - David Lum SCM 406W 4/13/08 Chapter 8 3. Suppliers...

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David Lum SCM 406W 4/13/08 Chapter 8 3. Suppliers have more than an equal weight on quality of a product. This is because the purchasing firm that makes the product spends 55% of their money on acquiring the components for their product. Since more and more companies are using suppliers to make their finish goods or assembly parts of the product. So it means the purchasers are becoming more reliant on the supplier’s quality, and the suppliers are becoming more involved in manufacturing. That is why they are just as responsible for the quality as the purchaser, who should be checking for errors. One supplier may have a greater impact on a purchasing firm then other supplier if one part is more essential for the purchaser’s product than another supplier’s part. This is especially the case if the part is inelastic, or the company can’t function without it, which can have huge consequences. 4. Purchasers communicating with suppliers about product development can improve quality
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This note was uploaded on 05/23/2008 for the course SCM 406W taught by Professor Dawnrussell during the Fall '08 term at Pennsylvania State University, University Park.

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