Cabellero acquired the requests and served as a gatekeeper by designing the requests in the manner that made sense to her. She then passed the proposals along to Menon and served an additional role as an influencer by adding her preference in purchasing. The chief financial officer, George Whitaker, fills the role of controller. He added some financial limitations and organizational considerations for the purchase, such as hiring costs, maintenance expense, and cost/benefit analysis.
The human resource manager, Gloria Sigel, represents staff members (users) in this decision and attempts to influence the purchasing decision on their behalf (Dwyer & Tanner, 2009, pp. 96-99). Akshay Menon, head of SRI’s Dallas operations, is in the third stage of the behavior choice model (Dwyer & Tanner, 2009, pp. 107-108). Menon needs to determine which action to take based on the requirements (p. 109). SRI’s buying center is somewhat time fragmented, as some members of the purchasing process contribute for only a short amount of time (p.
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The dimension of SRI’s buying center is horizontal, with many departments contributing to the decision process (p. 101). The horizontal element makes Menon’s decision difficult. Different departments have very different views on what elements should be considered in the final purchasing decision (p. 102). There are three choices available to Menon, each with different advantages and disadvantages. Menon must weigh the financial, performance, and social risk involved with each decision.
Five moderate-speed scanners: a. Preferred by production manager, minimizes social risk b. Greater protection if one is down for repair, minimizes performance/financial risk c. Greater flexibility for assigning work, minimizes performance risk d. Workers prefer these scanners, minimizes social risk 2. Three high-speed scanners: e. Preferred by chief financial officer, minimizes social risk f. Higher cost of scanners offset by need for fewer workers (only one shift required), minimizes performance/financial risk g.
Difficulty hiring workers and retaining services (verified by HR manager), maximizes performance/social risk h. Less expensive to operate, minimizes financial risk i. Disliked by workers, (unreliable, jams), maximizes performance/social risks 3. Three moderate-speed scanners and one high-speed scanner (four total): j. Compromise between other two choices k. Workers will prefer, easier to retain staff l. More expensive to operate m.
Less than five moderate-speed scanners, with more versatility retained from larger number of scanners purchased All of the risks involved are important, as they overlap and affect each other. As one study published in the International Journal Of Academic Research found, purchasing strategies have a major impact on production, especially when different strategies are combined (Perumal, Arokiasamy, & Zailani, 2011). The importance of each type of risk in purchasing decisions is not necessarily more important than another.
They should each be considered. The three high-speed scanners provide the highest risk, while the five moderate-speed scanners would have the highest operating cost relative to the high-speed. The choice of three moderate-speed scanners and one high-speed scanner would provide the least risk with the highest benefit. The scanner salesperson should take some time to investigate the issue of paper jams with their high-speed scanners and determine what can or needs to be done to minimize this issue.
The operators may need on-the-job training or perhaps air conditioning issues, such as temperature or humidity, are affecting machine performance. SRI would benefit from such an arrangement as well. The scanner company should ask to form cross-functional sourcing teams with SRI and other clients.