CHAPTER 11
Supply Chain Management
The majority of the cost of most manufactured product is in purchased materials. In some cases the percentage is 80 percent or more; it is seldom less than 50 percent. The importance of consistently high levels of quality in purchased materials is clear.
It is important to remember that dealings between companies are really dealings between people. People work better together if certain ground rules are understood and followed. Above all, the behavior of both buyer and seller should reflect honesty and integrity. This is especially important in quality control, where many decisions are “judgment calls.” There ...
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