Scenario 3:
Scope: Purchasing management in face of imperfect supply conditions
Challenge level: high
Components are needed in the factory. Purchasing is in charge of procuring them from suppliers, on time in full and on budget. There are unexpected events: delegates have to adjust and then plan for risk next time round.
Simulation time limit: 15 minutes
Learning objectives:
1. Explore the concepts related to purchasing (P.O, Vol. discounts, Lead times, vendor managed inventory (VMI), Payment terms, price increases).
2. Assess the risk factors in Purchasing and the need to react to unexpected events and to plan for supplier risks