1. Purchasing, Inventory, and Quality Control

2. Purchasing What is it? Types Retailing Manufacturing plant Government
Federal Acquisition Streamlining Act

3. Purchasing Why is it important? Trends/ Problems
Just-in-time inventory
Trends/ Problems
Supplier-base downsizing
Fully-integrated production networks
Not having right stock available

4. Purchasing One person in control Situations Why?
Expected change in price
Expected change in demand
Orders for specialty goods
Short supply of materials

5. Purchasing Choosing the Right Supplier
What to look for
Where to look
Single supplier o multiple supplier?
Investigating Potential Supplier
Evaluating Suppliers

6. Purchasing Establishing an Effective Purchasing Procedure
Requisitioning Goods or Services
Triggers
Retailing
Making and Planning Purchase Orders
Purchase orders
Standing orders

7. Purchasing Establishing an Effective Purchasing Procedure
Paying Satisfactory Price
Receiving items
Role of Computers

8. Inventory
“The property owned by a business or the property so listed.”
Role of Inventory
Types of Inventory
Finished items on display for sale
Batches of goods
Repair parts awaiting use
Supplies for use in office, store, or shops
Miscellaneous

9. Inventory 80-20 rule Cost of Carrying Inventory
Implications
Cost of Carrying Inventory
Determining When to Place an Order
Costs of ordering
Lead time
Determining How Much to Order
Economic Order Quantity
Balance cost of placing an order with inventory-carrying costs

10. Operations Planning and Control
Variations in Demand
Causes
How to Deal
Allow operations to rise and fall
Build-up inventory to level out
Carry complementary products
Do not expand facilities- just lose sales
Scheduling Operations
Controlling Operations

11. Quality & Control Growing importance What is quality?
Improving and Controlling Quality
Establishing quality circles
Designing quality into the process
Installing a quality control system
W. Edwards Deming

12. Quality & Control Who can measure quality?
Installing a quality control system
Set standards for the desired quality range
Measure actual performance
Comparing their performance with established standards
Make corrections when needed
Who can measure quality?
International Organization for Standardization