Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 3DQ
Summary Introduction
To describe: The five non-price issues over which the buyer and the seller would argue.
Introduction: Negotiation is the process, or a skill required to build a better relationship. It is important for negotiating service delivery, legal contracts, lease, and sales condition.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Discuss non-price issues over which a buyer and seller can reach an agreement, and explain why each issue might be important to the buyer or seller?
Read the passage that attached and answer the following questions. I am the SELLER in this situation.
What do you think that the most important issues are for your counterparty in the negotiation?
What do you think is your counterparty’s BATNA? Reservation price? Target?
What parts of the scenario work in your counterparty’s favor?
Read the passage that attached and answer the following questions. I am the SELLER in this situation.
Given your role, what are the most important issues in the negotiation?
What is your BATNA? What is your reservation price? What is your target?
What parts of the scenario work in your favor?
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- consider a situation where you are negotiating with Wal-Mart for your family farm’s milk. Confronted with various hardball price challenges, what type of negotiation situation would you use: distributive or integrative and why? What are your key negotiating principles?arrow_forwardDiscuss non-price issues over which a buyer and seller can reach an agreement, and explain why each issue might be important to the buyer or seller. (Business Sourcing)arrow_forward“A buyer should not only be concerned with negotiating the reduction of price with a potential supplier, other aspiration points and issues that may require negotiations in order to reach satisfactory settlement could relate to product quality, date of delivery, free delivery up to buyer’s end, reduction in packing charges, higher trade discount on bulk purchases, seeking maximum co-operation of the supplier, or even removal of obstacles that could arise in future etc.” That is to say, the fundamental drivers of carrying out negotiations are due to our basic needs, wants, and motivations. As the procurement role evolves from transaction-based into more of strategic partnership with suppliers, negotiation and management skills have become increasingly important. Hence, to have effective negotiation with suppliers, the skills employed by procurement professionals need to be broadened. a) What does the term negotiation generally mean? b) In more specific terms, what does negotiation in…arrow_forward
- A household appliances manufacturer needs a new parts supplier for its washers and dryers. The manufacturer advertises for competitive bids, and four potential suppliers submit their proposals. The manufacturer walks through each of the proposals and discovers two potential suppliers who offers substantial discounts while a third supplier offers less of a discount but better support services. After considering all the proposals, the appliances manufacturer decides on a supplier and begins negotiating the terms of its contract with the supplier. This entire procurement process is known as a O supplier selection processes O product specification processes competitive bid processesarrow_forward2) When conducting Negotiations, describe in detail each of the Golden Rules to follow and give an example of how you would utilize them a. What are the Buyers concerns and what 5 categories do they fall into – describe and give an example of each b. How do you deal with Price during Negotiations? What are the Do’s and Don’ts when addressing Price?arrow_forwardMr. Williams, the leather handbag buyer for an upscale menswear specialty retailer located in San Francisco, decides to review his vendor analysis report before making his forthcoming season’s purchases. The report shows that there are three relatively strong and three relatively weak suppliers among the top six resources in relation to the gross margin each generated. Mr.Williams realizes that some important aspects of his job as a buyer are to negotiate trade discounts, quantity discounts, cash discounts, dating, and transportation charges. Because any and/or all of these factors can increase the essential gross margin figure, he examines copies of past orders to determine the terms of sale on previous purchases. He discovers that some suppliers granted all his requests pertaining to discount and dating elements, certain vendors negotiated these factors only after an initial order was placed, and a considerable number allowed only the absolute minimum discount that prevailed in the…arrow_forward
- What is the difference between a competitive bid and a negotiated price?arrow_forward1. If you are the wholesaler, how would you propose to use supply contracts to increase the profits of both retailers and wholesalers? Please choose a supply contract and explain your design of supply contract with proposed price. You need to calculate related marginal profit and loss.arrow_forwardWhen conducting negotiations How do you deal with Price during Negotiations? What are the Do’s and Don’ts when addressing Price?arrow_forward
- A reservation price is: a) The price the other party offers b) The zone of possible agreements c) A quantification of a negotiator's BATNA d) A difficult targetarrow_forwardDiscuss the advantages of electronically transmitting and receiving purchasingdocuments between a buyer and seller.arrow_forwardElaborate the importance of Negotiation? Suppose you have to negotiate in car buying which points you should keep in your mind to make your deal effective?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.