Purchasing Decision Problem

You have recently been appointed corporate vice president in charge of purchasing for a large manufacturing company with twenty plants. At each plant, a purchasing officer currently does purchasing for that plant. There seems to be little coordination among them, and the relationships that do exist are largely competitive.

Your position was created to protect against supply shortages by instituting a centralized purchasing system. You were chosen for the position because of your extensive background in corporate purchasing with another firm that operated in a much more centralized fashion. A centralized procedure must be established that will minimize the likelihood of serious shortages and secondarily achieve the economies associated with the added power of centralized purchasing.

Review the Vroom decision processes decide which comes closest to what you should do were you the manager in the above situation. Write a brief explanation.

AI AIl CI CII Gil