BADM 2160 INTRODUCTION TO PURCHASING
BADM 2160 INTRODUCTION TO PURCHASING
Supply Chain Management by
Burt, Petcavage and Pinkerton
Eighth Edition
Chapter 1
The overall objective of this chapter is to give the reader a sense of the importance of purchasing and the supply chain and how they fit in to and impacts the business environment.
Vignette:
Careers in Purchasing and Supply Management
1. Does purchasing sound like a class (or career) you would be interested in? Why or why not?
2. Share with your classmates what you know about the function of purchasing.
3. Can you identify someone who might be a mentor during your early days if you decided to pursue a career in purchasing? (Note: This individual may be a great candidate for your Interview Project!)
What are the five rights involved in the process of professional purchasing?
1. Right Item or service
2. Right quality
3. Right quantity
4. Right price
5. Right time
List and describe the five stages of the Supply Management process.
1. Machines
2. Manpower
3. Materials
4. Money
5. Management
The Five M’s
What resources make up what management authorities refer to as the Five M’s and what is the relevance of each in the production process?
1. Materials are crucial to the production process. If there is an inappropriate amount of materials available (whether it be the wrong quantity, wrong quality, or not available at the right time), company costs are increased while company profits are decreased.
2. Manpower is the first source of productive power. Manpower existed before machines and the Industrial Revolution. Without manpower, production would cease to exist.
3. Machines are relevant to the production process because machines made it possible to produce multiples of the same product in a larger volume in a shorter amount of time.
4. Money is the essential bottom line in production. It costs money to make money. Without money, materials, manpower or machines would not be available. Without
Supply Chain Management by
Burt, Petcavage and Pinkerton
Eighth Edition
Chapter 1
The overall objective of this chapter is to give the reader a sense of the importance of purchasing and the supply chain and how they fit in to and impacts the business environment.
Vignette:
Careers in Purchasing and Supply Management
1. Does purchasing sound like a class (or career) you would be interested in? Why or why not?
2. Share with your classmates what you know about the function of purchasing.
3. Can you identify someone who might be a mentor during your early days if you decided to pursue a career in purchasing? (Note: This individual may be a great candidate for your Interview Project!)
What are the five rights involved in the process of professional purchasing?
1. Right Item or service
2. Right quality
3. Right quantity
4. Right price
5. Right time
List and describe the five stages of the Supply Management process.
1. Machines
2. Manpower
3. Materials
4. Money
5. Management
The Five M’s
What resources make up what management authorities refer to as the Five M’s and what is the relevance of each in the production process?
1. Materials are crucial to the production process. If there is an inappropriate amount of materials available (whether it be the wrong quantity, wrong quality, or not available at the right time), company costs are increased while company profits are decreased.
2. Manpower is the first source of productive power. Manpower existed before machines and the Industrial Revolution. Without manpower, production would cease to exist.
3. Machines are relevant to the production process because machines made it possible to produce multiples of the same product in a larger volume in a shorter amount of time.
4. Money is the essential bottom line in production. It costs money to make money. Without money, materials, manpower or machines would not be available. Without