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Production and Operations Management Neha Tikoo, Lovely Professional University

Notes Unit 8: Supply Chain Management

CONTENTS
Objectives
Introduction

8.1 Materials Management and the Supply Chain
8.2 Purchasing
8.2.1 Defining Specifications

8.2.2 Developing Criteria for Supplier Selection
8.2.3 Classifying Suppliers
8.2.4 Evaluating the Make or Buy Decision
8.2.5 Expediting and Follow-up
8.2.6 Forward Buying

8.3 Value Analysis/Value Engineering
8.4 Vendor Relationships
8.4.1 Transactional Relationships

8.4.2 Collaborative Relationships
8.4.3 Supply Alliances
8.4.4 Supplier Relationship Management (SRM) Focus
8.5 Learning Curves
8.6 Summary

8.7 Keywords
8.8 Review Questions
8.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the diverse aspects of purchasing;
 Recognize the significance of value engineering;
 Describe the different types and considerations of vendor relations;

 Discuss the concept of learning curve.

Introduction

The 1990s was a decade that brought in a quantum jump in many areas of management. One area
of great change was in the area of business logistics, procurement and materials management.
These disciplines went through several evolutionary stages starting with traditional procurement

148 LOVELY PROFESSIONAL UNIVERSITY