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24. Why is the purchasing activity becoming More important to global firms?

Over the Past 3 decades, increasing global competition has caused a dramatic increase in The outsourcing of materials. Firms are demanding the best value for all Components used in the finished product. Parts that were produced in-house as a Matter of corporate policy are being purchased from suppliers around the world. For a typical manufacturing firm, the share of finished product cost that is Represented by purchased parts (as opposed to in-house) can range from 40-60%. As a result purchasing is becoming a key success factor and the current Movement towards even greater trade internationally will only increase its Importance.

25. What are purchasing tasks and goals of Purchasing?

Purchasing Tasks:

Supplier selection, Quality management, Forward buying, Interaction with other corporate departments, Goal of purchasing.

What are the advantages And disadvantages of a manual warehouse?

Manual handling Systems require a great deal of labor and tend to work best where is very high Or very low demand for the goods within. It can be extremly costly if local Wages are high.

What are advantages and Disadvantages o fan automated warehouse? Attemps to improve producitvity and efficiency by Mechanizing labor-intensive storage activities.  It's a way of eliminating human labor and making the jobs of these Workers remaining more productive and safer.

What variables should Managers weight in deciding how much to automate the warehouse?

It must accurate dana At every stage of process, and it must be available to all operations within The warehouse and to the supply chain as well. Customers are now demanding Real-time tracking of goods that can only be provided with ADC tchnnology.

Briefly distinguish Between the marketing package and the logistics package?

Marketing cares About packaging because of the rule it plays in capturing and retaining Customers. Logistics is concerned with packaging that will protect the product And make it easier to handle.

How might marketing's View of packaging conflict with that held by the logistics department?

Marketing, for example Wants an inner package that supports the product, appeals to the target Customer, and conveys an appropriate message about the firm and what it stands For.

Briefly describe some of The tradeoffs between packaging and other components of the logistic system?

Packaging costs Increase directly with the level of protection desired. Losses from damaged Goods fall as the amount spent on packaging increases. Also, the less expensive Modes of transport require better packaging because goods are more susceptible To damage.

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