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Due to growth, a private school system finds that its costs for support, including maintenance and janitorial services, have increased dramatically. Though supply management generally does a good job in managing service contracts, there Is no strategic plan or systematic method for reviewing costs on a long-term basis.
The school's board has made the development of a strategic plan the supply manager's priority assignment for the next school year. Given this situation, which of the following should be the supply manager's FIRST step in developing this plan?
DEF, Inc. conducts a Request for Information (RFI) to identify suppliers who will be invited to participate in a Request for Proposal (RFP) for technical support. The RFI requires audited financial statements. DEF receives an inquiry from a publicly traded supplier asking if their 10K statement will suffice, and a privately held supplier states that it will only provide its audited financial statement after receiving a nondisclosure agreement from DEF.
Given this situation, which of the following is the BEST course of action for DEF to take?
A supply manager for JKL, Inc. finds a potential new supplier for an item included In a finished product. Quality and service are comparable to those of the current supplier, and the new supplier's cost per unit is $.03 lower than that of the current supplier. Making the transition to the new supplier will require changes to operations costing approximately $12,000. How many units would JKL need to buy in order to justify changing suppliers?