Upon completion of this course, the student will be able to:
1. Describe the role of purchasing in contributing to the profitability of the enterprise.
2. Explain the strategic planning process for purchasing, the basic components of purchasing strategy, and the role of purchasing in corporate strategy.
3. List the advantages and disadvantages of centralized purchasing and alternative organizational structures for the purchasing function.
4. Define the legal aspects of purchasing, requirements for a contract, different types of contracts, and the role and importance of electronic contracts and electronic signatures.
5. Explain the relationship between purchasing and materials management, inventory management, JIT management, and MRP.
6. Analyze inventory using ABC analysis; determine the economic order quantity and cost using the EOQ model; and analyze the impact of quantity discounts on purchasing.
7. List the steps in the conventional purchasing cycle and main activities of a typical purchasing department
8. Describe the qualifications of a good supplier, supplier selection techniques, and the potential benefits of supply chain partnerships.
9. Explain the role of purchasing in global sourcing and critically analyze various global sourcing alternatives
10. Explain purchasing’s role in quality assurance.
11. Analyze the relationship between cost and price and demonstrate a working knowledge of the various pricing methods.
12. Describe how to purchase transportation services and apply the appropriate pricing strategy for alternative transportation modes.3
13. Explain how life cycle costing and other financial techniques can be used to evaluate capital equipment investments
14. Describe the role of purchasing in acquiring professional services.