Case

Name: _ Spyridon Gkrilias ,Chao Ma, Xiaoyu Yu, Jiyoung Hwang ______________
Group: __5________
Date: __1/21/2015_____________
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Situation: * Heather Sloman, buyer in the purchasing department of SU * Reports Glen Meredith * Walter Charbonneau, manager of the registrar’s office * Bought folding machine without following standard university * The supplier was not on approved supplier list * Against the policy of soliciting at least two written quotations for purchases in excess of $7500 * Approved supplier quotes $10000 for similar equipment * Current situation * Purchasing in SU was centralized and managed by purchasing department * It is university policy that approval from the purchasing department was required before commitment could be made to supplier * At least two written quotation for purchases in excess of $7500 * Heather collected bids from the suppliers on list: $10000, $11000 and $15000(one year of free service)

BASIC ISSUES 1. Purchase for university 2. Purchasing policies 3. Supplier policies 4. The price, quality, service trade-off.

Tasks: * What does Heather do with the machine in the registrar’s office? * Keep the machine and pay the supplier * What are alternatives? Need to weigh alternatives. * is there a penalty on cancellation * Will the supplier offer a lower price? * Complete cost-benefit analysis; does the cancellation penalty more than the money we can save by purchasing from approved suppliers? * Are the machine really needed? * What is the university policy on unapproved orders? * Does the orders and subsequent actions fit university’s cost-saving goal?

SUGGESTED QUESTIONS FOR DISCUSSION;
1. Why faculty purchase