Unit 4: Strategic planning

Question 1

what is internal sourcing?

Answer 1

is the sourcing of materials with organization

Question 2

What is external Sourcing?

Answer 2

It is the sourcing of materials and services from other organizations

Question 3

leasing and buying

Answer 3

lessor buys and owns the assets

lessee hires and pays the lessor rental

Question 4

what are the factors in leasing or buying to consider

Answer 4

operating
legal
finiancial

Question 5

domestic sourcing is suitable for

Answer 5

high tech products
changing product specifications
fast delivery required

Question 6

domestic sourcing advantages are

Answer 6

closer contact and control
shorter lead times
lower shipping rates
flexibility

Question 7

overseas sourcing is suited for

Answer 7

bulk products
standardized products
the large price difference for the same commodity

Question 8

overseas sourcing advantages are

Answer 8

to obtain better quality products
to access the only source available
introduce competition to the domestic supply base….

Question 9

why must buy from a single sourcing

Answer 9

only one supplier 
monopoly
high tooling costs
delivery required in a short time
only that supplier has the technological know how

Question 10

single sourcing advantages

Answer 10

closer partnering relationships between buyer and seller

supplier more open and willing to invest in r&d

Question 11

mulitple sourcing advantages are

Answer 11

improve services between suppliers
more contact with supply market
reduce supply risks

Question 12

what is forward buying

Answer 12

it is the increasing stocks beyond minimum forcasted quantites