University Management 2: Assignment 1 - Purchasing & Logistics

This management assignment analyzes key concepts in purchasing and logistics through case studies. The assignment explores topics such as supplier selection, inventory management, and the steps involved in ordering stock. Case studies delve into operational objectives, lean logistics, and the interdependence of suppliers within a supply chain. The student reflects on the learning experience, highlighting the application of management principles and the acquisition of knowledge related to logistics, which will contribute to organizational success. The assignment covers critical business functions and examines the integration of suppliers, manufacturers, and warehouses to meet customer requirements. It also discusses the difference between purchasing and procurement, emphasizing the importance of efficient logistics management.

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

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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

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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).

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Financial stability: It is identified that the financial status off the suppliers needs
to be properly evaluated for affecting its entire ability for serving the customers quite
effectively. It is found that proper analysis of the credit report helps in playing a
significant role in financial evaluation properly (Grimm et al. 2016).
Answer to question number 3
The two suppliers within the supply chain of vehicle manufacturer could be
interdependent are mainly listed below:
 Autoseat Africa who are the suppliers of fabric for automotive seats
 AECI Coatings which is a supplier for high tech automotive paint coatings
Case Study 2
Answer to question number 1
It is found that in order to achieve operational objectives of the logistics
management, Mary can ask the as the organization to save money on any of the
equipment. This is mainly done by properly implementing proper preventative
maintenance which is considered as one of the ways of achieving logistic based cost
reduction quite effectively. In addition to this it is necessary to properly focuses on
labour reduction for different types of warehousing related options. Proper utilization of
warehouse mobility helps in reducing overhead costs and further helps in increasing the
productivity of the individuals (Harrell 2015). Furthermore, the organization can also
collaborate as well as partner with a number of suppliers for reducing the cost.
Answer to question number 2
The main objective of lean logistics for Mary is to properly eliminate waste and
which means eliminating anything which do not generally add value to a customer when
they are willing to pay it effectively (Cil et al. 2016). The various types of companies that
can take advantage of the concept of lean logistics generally include manufacturing,
auto mechanics, product design, hospitals as well as office jobs. In addition to this, it is
found that for gaining proper traction of lean logistics as well as material flow, it is
necessary to have proper support from the executive level. Moreover, the logistics as

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well as material flow-based program are not just a several month-based project but it is
an on-going multi-year cultural shift.
Answer to question number 3
It is found that proper operation of inventory management generally helps in
determining the efficiency of product storage and the progress within techniques as well
as management principles are helpful in properly moving load, service quality as well as
operation costs. It is found that proper strong system is mainly needed for clear frame of
the logistics and for properly implementing inventory for linking it successfully in order to
produce a number of procedures (Gallino, Moreno and Stamatopoulos 2017). Moreover,
it is found that inventory management helps in ensuring proper flow of goods as well as
services and helps in managing activities that are properly involved in proper
management of the inventory level raw materials as well as finished goods.
Case Study 3
It is found that while undertaking this unit, I have improved my thinking in logistic
and management and have gained proper knowledge in managing business. I have
also gained positivity by reflecting the journal reflection properly that further showcase
the content, process as well as the activities that are actually done on a daily basis and
this reflective journal have helped me in determining some of the important events that
had generally happened while involving within this unit. Furthermore, the journal
reflection helps me in providing proper understanding about various elements so that
proper quality work can be delivered within this unit effectively. By involving within this
unit, I have gained a lot of management related knowledge that will further help me in
managing any projects effectively. I have also gained knowledge about ordering stock
from various suppliers and have analyzed important criteria’s that are considered to be
important sources which needs to be recommended for sourcing suppliers.
Furthermore, knowledge related with logistic will help me in increasing my met profit
within the organization quite effectively. Thus, I have analyzed that this unit will lead me
towards organizational success as I am encouraged to achieve the goals of the
organization by proper management as well as expectational behaviour which also
helps the team members performance.

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References
Cil, I., Erdil, N.O., Kilic, T. and Kosar, B., 2016, December. Lean logistic network design
and analysis with Anylogic. In LM-SCM 2016 XIV. International Logistics and Supply
Chain Congress (p. 523).
Gallino, S., Moreno, A. and Stamatopoulos, I., 2017. Channel integration, sales
dispersion, and inventory management. Management Science, 63(9), pp.2813-2831.
Grimm, J.H., Hofstetter, J.S. and Sarkis, J., 2016. Exploring sub-suppliers' compliance
with corporate sustainability standards. Journal of Cleaner Production, 112, pp.1971-
1984.
Harrell Jr, F.E., 2015. Regression modeling strategies: with applications to linear
models, logistic and ordinal regression, and survival analysis. Springer.
Jain, A., Rudi, N. and Wang, T., 2015. Demand estimation and ordering under
censoring: Stock-out timing is (almost) all you need. Operations Research, 63(1),
pp.134-150.
Jajja, M.S.S., Kannan, V.R., Brah, S.A. and Hassan, S.Z., 2017. Linkages between firm
innovation strategy, suppliers, product innovation, and business
performance. International Journal of Operations & Production Management.
Krommyda, I.P., Skouri, K. and Konstantaras, I., 2015. Optimal ordering quantities for
substitutable products with stock-dependent demand. Applied Mathematical
Modelling, 39(1), pp.147-164.