Using the risk/value technique, categorize the importance of the following items for an automobile manufacturer: engine, tires, gasoline, paper for the employee newsletter, a uniquely designed and engineered muffler, and rail car service to dealers. Describe the rationale you used to ascertain each categorization.
Answer to relevant QuestionsThe strategic sourcing process can be described in terms of a series of steps that should be used in the purchase of goods and services. Briefly discuss these steps. What are the major sources of prices in the purchase of goods? Under what circumstances would these sources be utilized? Reverse flows were typically viewed as a nuisance by business organizations. Why? Has this attitude changed? Why? Create a value stream, not a waste stream. What is your evaluation of this statement? How can companies achieve this outcome? 1. Why and how has the competitive market place for SAB changed in the last five to seven years? 2. What advantages might Central experience in the proposed new venture? 3. What issues would SAB and Central face in the ...
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