Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

The case introduces students to the concept of supplier management with scorecard and other performance measures and the concept of Total Cost of Ownership The purpose of this case is to enhance the student’s understanding of the role of performance measures in the inter organizational setting - buyer supplier partnerships. In particular their role in managing the purchase allocation decision made by the buyer; The role of management accounting information in the purchase allocation decision is explained by the total cost of ownership concept; Purchase allocation decisions are made with respect to various factors including past performance, strategic importance and inventory requirements; Understanding the extent to which these factors are in play in the purchase allocation decision by buyers is important to the development of modern management systems in settings where there is increased outsourcing of non-core value added activities. As more parts of the global supply chain are being located in China, greater responsibility falls on the management to adopt systems that can help them to manage and satisfy international standards for delivery and quality.
Location:

About

Abstract

The case introduces students to the concept of supplier management with scorecard and other performance measures and the concept of Total Cost of Ownership The purpose of this case is to enhance the student’s understanding of the role of performance measures in the inter organizational setting - buyer supplier partnerships. In particular their role in managing the purchase allocation decision made by the buyer; The role of management accounting information in the purchase allocation decision is explained by the total cost of ownership concept; Purchase allocation decisions are made with respect to various factors including past performance, strategic importance and inventory requirements; Understanding the extent to which these factors are in play in the purchase allocation decision by buyers is important to the development of modern management systems in settings where there is increased outsourcing of non-core value added activities. As more parts of the global supply chain are being located in China, greater responsibility falls on the management to adopt systems that can help them to manage and satisfy international standards for delivery and quality.

Settings

Location:

Related