Since Purchasing Managers Are Evaluated and Rewarded on the Basis

question 35

Essay

Since purchasing managers are evaluated and rewarded on the basis of cost savings generated, why are they often willing to overlook the low-price supplier in favor of a higher-priced supplier that offers superior logistical service? Can they justify this on a cost basis?

---

Definitions:

Resting Membrane Potential

The electrical charge difference across the cell membrane when the cell is not actively transmitting signals, typically around -70mV for neurons.

Local Potential

Depolarization that is not propagated and that is graded or proportional to the strength of the stimulus.

Summate

To add together or accumulate to a total; in physiology, refers to the additive effect of repeated stimuli on a nerve or muscle.

Gray Matter

Regions of the brain and spinal cord with a high concentration of cell bodies, dendrites, and axon terminals of neurons, distinguished from white matter.