What are some of the benefits of effective sourcing decisions?
What will be an ideal response?
Answer: Effective sourcing processes within a firm can improve profits for the firm and total supply chain surplus in a variety of ways. It is important that the drivers of improved profits be clearly identified when making sourcing decisions. Some of the benefits from effective sourcing decisions are the following:
• Better economies of scale can be achieved if orders within a firm are aggregated.
• More efficient procurement transactions can significantly reduce the overall cost of purchasing. This is most important for items where a large number of low-value transactions occur.
• Design collaboration can result in products that are easier to manufacture and distribute, resulting in lower overall costs. This factor is most important for supplier products that contribute a significant amount to product cost and value.
• Good procurement processes can facilitate coordination with the supplier and improve forecasting and planning. Better coordination lowers inventories and improves the matching of supply and demand.
• Appropriate supplier contracts can allow for the sharing of risk, resulting in higher profits for both the supplier and the buyer.
• Firms can achieve a lower purchase price by increasing competition through the use of auctions.
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At Kearns, Inc, the management team has decided to improve its use of marketing measurement. Rachel Brown has been charged with overseeing the process issues related to marketing measurement
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Which of the following statements is true of the National Consumer Arbitration Program?
A) The arbitrator can award punitive damages. B) It can only hear cases that have been dismissed from court. C) Arbitration through this program is more expensive than a lawsuit in court. D) Arbitrators cannot award damages beyond the value of the product in question.
Which state court was the first to adopt the doctrine of strict product liability?
a. New York. b. Michigan. c. California. d. Pennsylvania.