Identifying Weaknesses and Inefficiencies in n Purchasing System Madeline Jones, the Lecimore Company's purchasing department manager, has established new policies and procedures to guide the day-to-day operations of purchasing agents and clerical staff. She's satisfied that the policies and procedures conform with management's objectives and that there are no major deficiencies either in the department's policies or in the procedures that control the department's operations.

Some of the policies and procedures follow:

• All significant purchases are put out to competitive bid, although the likelihood of timely delivery and vendor reliability are considered in awarding contracts.

• Purchasing provides vendors with memoranda detailing minimum acceptable product quality specifications.

• The materials department manager, rather than Purchasing personnel, is responsible to assure that vendors adhere to quality specifications.

• The materials department manager prepares purchase requests based on a fourmonth production schedule.

• Ninety percent of a critical raw material is supplied by a single vendor. The vendor, low bidder in each of the past few years, has a good delivery record and is quite reliable.

• As production plans change, rush and expedite orders are made directly to Purchasing by production managers. Materials ordered for canceled production runs are stored for future use. Although the costs for rush and expedite orders are borne exclusively by the purchasing department, Jones considers the costs essential to the department's reputation as a contributing team player

• Materials needed to accomplish engineering changes are ordered by Purchasing immediately after Engineering approves changes. Jones is proud of the purchasing department's quick response. Materials on hand are not reviewed before any orders are placed.

• Partial shipments and advance shipments (i.e., those received before the requested date of delivery) are accepted by the materials department manager, who notifies the purchasing department of the receipt. The purchasing department is responsible to follow up on partial shipments. No action is taken to discourage advance shipments.

Required: 

Identify weaknesses and inefficiencies in Lecimore Company's purchasing policies and procedures, and make recommendations to improve each.