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Southeasten University Case

In:

Submitted By kickme345
Words 515
Pages 3
Situation:
• Heather Sloman is one of the buyers in the purchasing department of the Southeastern University. o Report to her boss, Glen Meredith, about a new equipment purchase all purchases report to director, Blake Hyatt,
• New equipment was purchased without following standard university purchasing polices.
• Standard university purchasing procedures: o Submit a purchase request to purchasing department o Additional information may need to be added: such as tax, and duty status, product classification and supplier status o If purchase amount over $7500, at least two written quotations are required; if the amount over $15,000, three or more written quotation is required o Buyer prepares the request for quotation form (RFQ). o Any RFQs over $100,000 had to be posted on the internet.
• Current situation: o Walter placed an equipment order that cost $14,000 o Other suppliers offered lower rate or better service plan for similar equipment: $10,000, $11,000 and $15,000 that included one year free service.
BASIC ISSUES:
1) University personnel placed the order directly with supplier
2) About 275 cases were signed with suppliers without prior approval each year
3) Some employees often ignore university policy
Tasks:
• What should Heather do? o Should Heather keep the machine and pay for it? o Status quo
• What are alternatives: o Can the equipment be returned? (avoiding a cancellation penalty) o Can Heather negotiate a lower price? o Can Heather just follow the standard procedures of the university?
• What’re the pros and cons of the quotes for similar equipment?
• How to prevent this situation happen again?
Actions:
• Talk to the senior buyer, Glen.
• Present case to upper management
• Determine if Heather

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