Case1-3 Essay

630 Words3 Pages
SITUATION: 1. Heather Sloman is a buyer in the purchasing department of Southeastern University. Reports to her boss, Glen Meredith. 2. University has a centralized purchase system. 3. Walter bought a piece of equipment without following policy and the supplier is not an approved one 4. Current situation: * About 16,000 pieces of mail are sent per year. * 50 to 60 people manually stuffed envelopes two days in a month. * The equipment was bought at a cost of $14,000 – quotes from three suppliers $10,000, $11,000, $15,000(third one include one year of free service) * University has about 1,200 approved suppliers, a list adjusted every three to five years. * Purchased folding machine had not been installed. * The number of similar cases is nearly 275 each year. BASIC ISSUES; (note - tie to elements from textbook) 1. Purchasing for a large university. 2. The product, service description, quantities, delivery, terms of payment. 3. Partnership between the school and suppliers 4. Treatment of ignoring purchasing policy TASKS: 1. What does Heather do? * Does Heather keep the machine and pay the money? * Return the machine, and if necessary, she could negotiate a cancelation penalty. * Negotiate for a lower price 2. What are alternatives? Need to weigh alternatives. * Do they really need this machine? * Whether the machine is efficient. * Compare the cost of the machine with the salaries of hiring temporary stuff in registrar’s room. * Evaluate the supplier of this machine. 3. How to prevent these kinds of situations from happen again? Actions 1. Evaluate whether the machine is efficient. a. If it is efficient, simply keep the machine or negotiate with the supplier for a lower price b. If not, return it, if necessary, negotiate a cancellation penalty. 2.

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