Assignment On Creating agreement

Running head: MANAGEMENT
Assignment 1
Name of the student
Name of the university
Author’s Note

MANAGEMENT
1
Table of Contents
Case Study 1.....................................................................................................................2
Answer to question number 1........................................................................................2
Answer to question number 2........................................................................................3
Answer to question number 3........................................................................................3
Case Study 2.....................................................................................................................3
Answer to question number 1........................................................................................3
Answer to question number 2........................................................................................4
Answer to question number 3........................................................................................4
Case Study 3.....................................................................................................................5
References.........................................................................................................................6

MANAGEMENT
2
Case Study 1
Answer to question number 1
The steps that are needed to be followed by vehicle manufacturers while
ordering stock from the various suppliers are mainly listed below:
Evaluation: One of the most initial steps is to properly evaluate the items that
are present. It is found that the prudent purchaser is mainly concerned about the service
of the vehicles when it generally comes to inventory needs (Jain, Rudi and Wang 2015).
Creating agreement: The second step is to negotiate the sales agreement such
that both the purchaser as well as distributor can agree on a price-based discount for
the vehicles. In addition to this, the agreement also helps in listing conditions as well as
rules for return as well as payment.
Submit purchase order: In the third step, the purchase order is considered as
one of the commitments for buying items as long as the recipient delivers. The purchase
order generally helps in outlining different types of items such that the purchaser desires
for proper inventory as well as for addressing shipping (Krommyda et al. 2015).
Pay invoice: It is found that the distribution company generally receives as well
as processes the purchase of the order. After properly shipping the items to the entire
purchaser, the distributor then issues proper invoice for the vehicles for requesting
payment effectively.
Answer to question number 2
The most important criteria that is mainly considered for sourcing suppliers for
Ford are listed below:
Cost, quality and delivery: It is found that the most important criteria within the
automotive industry is to deliver proper quality of materials as well as cost. The most
important factor of supplier selection must be due to the quality levels of various
procurement items (Jajja et al. 2017).