0303

Problem

Karen Weber, the purchasing agent for Smith Manufacturing, views the purchase of widgets as a routine buying decision. What factors might lead her to alter this position? More important, what factors determine whether Karen considers a particular supplier, such as Albany Widget?

Step-by-step solution

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Step 1/3

Positioning of purchase is not an easy task but it requires effort and strategic movement. There are certain factors that affect the decision of positioning the purchase in a different category of needs.

Step 2/3

The salient factors that will stimulate to change the position of purchase in the given context are explained as follows. For KW, to change her position of purchase, the centralized buyer has to be changed to a decentralized system. Here, the purchase is made with short-term cost efficiency and profit consideration. This will give her a different position that the purchase of widgets may not be a routine purchase. Secondly, environmental forces may tend her to change her decision. The environment changes frequently and this stimulates the need for new technologies and widgets. It includes technological innovation and economic influences over business industries. These are the main factors that may lead her to change this position.

Step 3/3

In this context, the following factors may affect the decision of selecting the best-suited supplier like A widget. The major consideration is given to the total cost of the products that the new supplier. The cost should be correlated and compared together with the factors like material managing, quality, and reliability. The supplier who provides uninterrupted materials for the firm should be of premium quality. There should be an easy return and refund policy if the material is not satisfactory. The suppliers should be capable of providing additional materials on demand. The overall cost should be low and the quality should be high. These are the factors that determine K’s decision while selecting a supplier.