MKTG 444
SUPPLY MANAGEMENT
MKTG 444. Supply Management
Three hours lecture (3).
Prerequisites: MKTG 340
The study of organizational acquisition of equipment, materials, services and supplies. Students learn current purchasing and logistics supply chain operations and relations in organizational markets including industrial, business-to-business, institutional and governmental. Case studies and/or computer simulations used.
In the course, students learn the processes of organizations’ acquisition of materials, equipment and services, with emphasis given to firms which create goods and services, but purchasing by governments and other institutions is also covered. The subjects covered are fairly standard in the leading textbooks in the supply management field. Coverage is adapted to include additional material needed to pass the Institute of Supply Management (ISM) Certification test. Short written case studies and/or computer simulations serve as an experiential way for students to study a variety of problems and topics which are covered in the course.
The course has four logical parts. In the first, students learn the functions of purchasing and supply management in the organization.. The need for and methods of establishing cross-functional purchasing operations in the firm and cementing relationships with suppliers are emphasized. The dyadic relations between buying and selling firms and personnel, the organizational dynamics of purchasing, and purchasing’s contribution to profitability are studied. The students’ knowledge of accounting, finance, management and marketing are given a purchasing perspective.
The second part of the course focuses on the buying transaction process. Determining requirements and making specifications are followed by locating and encouraging diverse suppliers in the bidding process. Finally, the students become knowledgeable on price analysis and cost analysis and learn some tools of contracting and negotiation. Ethical purchasing practices are interwoven in class discussions and cases. Students are required to submit written analyses of short, but demanding textbook and locally-developed case studies in one-page, executive summary format typical of those used in purchasing departments. Cases are very much like those used in certification examinations. .
The third part of the course addresses the logistics part of supply chain management. Inventory, transportation and storage are the principal logistics areas covered. The techniques of management science are integrated into acquisition and materials management operations. Students are required to submit analyses of case studies and problems which are more quantitative than in the second part.
The final part of the course compares industrial purchasing to governmental purchasing and purchasing by institutions. The important current legal issues are discussed and students are invited to resolve ethical issues in governmental and institutional buying. The course ends with an investigation of strategic procurement.
Upon successful completion of the course, students will:
Assessment of student success in the course is based on performance on tests, case analyses and/or computer simulations, class participation, papers, and outside assignments.
This course is one of the electives from which management majors and marketing majors must select one.
DATE ACTION APPROVED BY
10-18-04, reviewed and approved by the Dept. of Management and Marketing faculty