MGMA01H3 Chapter 17: chapter 17
15 Apr 2011
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purchasing managers balance their contracts so that neither manufacturer nor supplier is highly dependent on each other: co-specialization. purchasing managers try to achieve a degree of mutual dependence in their alliances: target costing. purchasing manager set target costs based on the manufacturer"s goal for the final selling price. cooperative approach to pricing: personal ties. personal ties among managers are often what keep alliances productive. Total cost approach: the total cost approach holds that all relevant factors in physically moving and storing products should be considered as a whole and not individually. Transportation: the canadian transport commission (ctc) is an agency of the federal government that is responsible for the air, rail, pipeline, and inland water components of the transportation industry. Multimodal transportation: a combination of modes may meet established customer service standards at the lowest cost, because of the various disadvantages and advantages for each mode.
