1. Define terms related to supply management. Differentiate between
 Purchasing/procurement/supply management – supply management function. Purchase for the company. Include negotiations, delivery, contracts, receiving, inspection, storage, materials handling, scheduling, inbound and outbound traffic, and disposal.
 logistics – manage flow of materials and information, warehouse, storage, delivery
 supply chain management – broader term, focus on customer,
 Lean purchasing and lean SCM – JIT, managing in a way to reduce/eliminate waste and unnecessary resources

2. Is purchasing a profession? Explain your answer.
• Purchasing is a profession because students have the option to study supply management at highly-regarded universities world-wide. There are also professional associations affiliated with the career and additional certifications available.
3. Be able to explain the organizations spend and financial significance
• Supply can have a significant impact on the company’s bottom line. This can be done by reducing the amount spend on goods and services and minimizing costs such as expedites
4. Discuss the operational versus strategic contribution of supply management.
Operational – Trouble prevention, i.e. improper quality, wrong quantities, late deliveries---day-to-day
Strategic – Opportunity maximization, focuses on new and better solutions

Direct – Bottom-line impact
Indirect – Enhancing performance of others
5. Be able to explain the difference between commercial and consumer acquisitions.
 Commercial – large quantities, more specialized materials, higher dollar value, few suppliers, purchasing needs to negotiate and have expertise
 Consumer - small quantities/less spend, large varieties of standard items, customized items on occasion, many sellers, end user, consumers don’t usually negotiate
6. Be able to discuss decision making