Responsibility of purchasing agent (Adapted from a description by R. Villers) Mark Richards is the purchasing agent for the Hart Manufacturing Company. Kent Sampson is head of the Production Planning and Control Department. Every six months, Sampson gives Richards a general purchasing program. Richards gets specifications from the Engineering Department He then selects suppliers and negotiates prices. When he took this job, Richards was informed very clearly that he bore responsibility for meeting the general purchasing program once he accepted it from Sampson.

During week 24, Richards is advised that Part No. 1234—a critical part—would be needed for assembly on Tuesday morning of week 32. He found that the regular supplier could not deliver. He called everywhere and finally found a supplier in the Midwest who accepted the commitment.

He followed up by e-mail Yes, the supplier assured him, the part would be ready. The mailer was so important that on Thursday of week 31, Richards checked by phone. Yes, the shipment had left in time. Richards was reassured and did not check further. But on Tuesday of week 32, the part had not arrived. Inquiry revealed that the shipment had been misdirected by the railroad and was still in Chicago.

What department should bear the costs of time lost in the plant due to the delayed shipment? Why? As purchasing agent do you think it is fair that such costs be charged to your department?