Scm 421 Exam 1

Purchasing in the pre 1970s - Answer- CLERICAL ERA -before WW2: purchasing was a clerical function -purchasing world -subordinated to other function within the firm Purchasing in the late 1980's-90's - Answer- TRANSACTIONAL ERA -materials costs= 60% of COGS in the U.S.A -traditional activities (purchasing) continued -new responsibilities included supplier management, lean management, and outsourcing Purchasing in the 2000's to present day - Answer- STRATEGIC ERA -from purchasing to strategic supply management -assurance of supply, cost reduction, supply network rationalization, risk management, sustainable sourcing, supply chain integration 7 rights of purchasing - Answer- 1. obtaining the right material 2. in the right quantity 3. for delivery to the right place 4. at the right time 5. from the right supplier 6. with the right service 7. at the right place what right of purchasing is the most important and why - Answer- -from the right supplier -important because it affects all other rights, without the right supplier you have quality and availability issues, assures you have high-quality inputs at the lowest price Total Cost of Ownership (TCO) - Answer- -estimate of expenses associated with purchasing -you want to obtain the lowers TCO =price + cost of owning/using + cost of disposing Purchasing (sourcing/procurement) definition - Answer- process of obtaining materials, products, and services for the firm Supply management definition - Answer- the identification, acquisition, access, positioning, management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives What were the key challenges for Pfizer and Moderna in manufacturing and delivering the va