Course outcome in focus:
· Explain make or buy, insourcing, and outsourcing decisions.
· Identify various methods of identifying supply need and specification.
· Explain the dichotomy of profit leverage and expense effects of purchasing and supply management in an organization.
Activities:
Readings:
· Read Chapter 5: Make or Buy, Insourcing, and Outsourcing
· Read Chapter 6: Need Identification and Specification
· Case Study: Carson Manor (6-3)
Supporting Topics:
Lecture 1 Topics: · Reasons for make or buy · Subcontracting · Outsourcing supply and logistics · Supply’s role in insourcing and outsourcing | Lecture 2 Topics: · Need criteria · Categories of needs · Repetitive or non-repetitive requirements · Translate needs to commercial equivalents · Early supply and supplier involvement · Standardization and simplification. |
Lectures/Discussions:
- Lecture on: reasons for make or buy, subcontracting, outsourcing supply and logistics, and supply’s role in insourcing and outsourcing.
- Discussion 1: Make or Buy and Sourcing. Students will respond to the following:
o Imagine that the hamburger giant McDonald’s desires to reduce the cost of hamburger or potato supplies. Explain pros and cons of each consideration: make or buy, subcontracting and outsourcing.
o Reason how each consideration would alter the overall structure of the organization.
o State one (1) recommendation based on the above pros and cons of each consideration, and discuss the overall impact of your recommendation to the structure of the organization.
- Lecture on need criteria, categories of needs, repetitive or non-repetitive requirements, translate needs to commercial equivalents, early supply and supplier involvement, and standardization and simplification.
- Discussion 2: Needs Analysis – Case 6-3 Carson Manor. Students will respond to the following:
o Suggest what and how Ms. Elaine Taylor can do to increase her and her staff’s knowledge in procuring management consulting services.
o Contrast and compare the three (3) proposals reviewed, summarized, and shown by Ms. Elaine Taylor in the case.
o Explain which one (1) of the three (3) management consulting services you would suggest Ms. Elaine Taylor to recommend to the City Administrator.
· Week 4 Quiz
Students are to take the Week 4 quiz that covers the materials in Chapter 4. The quiz is located in the course shell under the Week 4 tab. This is an open book, timed quiz that can only be taken once with a time limit of one hour. The quiz consists of ten multiple-choice questions with each question worth 6 points of a total of 60 points for this quiz.
Online students are to complete the quiz by Monday 9:00 a.m. On-ground students are to complete this quiz before the Week 4 class meeting.
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