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10
Purchasing
In this chapter we will: briefly contrast traditional purchasing objectives and approaches
with Lean ones, compare unit cost approach to purchasing with “total landed cost”
model, contrast suppliers as partners vs. “market driven” purchasing, and describe
working with suppliers to reduce lead time, lot sizes, and cost.
Well, you have finally reached the chapter that most people associate with supply
chain management: purchasing. In this book we have used a much broader definition
of the supply chain, backed by many supply chain definitions, including the APICS
Dictionary and the Supply Chain Council. e premise is that you cannot effectively
manage a supply chain without being intimately familiar with not just the delivery
steps ...