Assume you work in the procurement department of a small ...

[Wadzanai]

Assume you work in the procurement department of a small aerospace parts manufacturer. Your company builds switches used to control heating and ventilation systems in large buildings. The parts your company buys must meet precise specifications and the parts are not generally interchangeable; that is, your companys engineers must work with your suppliers to design specific parts for particular systems. Your director of purchasing is interested in using online reverse auctions to buy these parts. In approximately 200 words, outline arguments for and against using online reverse auctions in this situation and conclude with a specific recommendation

Question 2

Midland University, like most metropolitan universities, faces a chronic shortage of parking spaces on campus. Each stakeholder group in the typical university community (these groups include students, faculty, administrators, staff, and visitors) believes its members should have the top priority for parking spaces. You have been assigned to a university task force to study the problem. You decide that an annual online auction of parking spaces conducted on the universitys intranet could provide a solution. In about 300 words, describe the elements of an annual online auction for parking spaces at Midland University. Be sure to include provisions for disabled persons and for those university employees who do not have regular access to computers in their typical work environment (such as janitors, physical plant maintenance workers, or gardeners).

[ASDFGJLO]

Answer to Question 1

Advantages:

• Cost savings


• Widens circle of trading partners


• Streamlines buying process

Disadvantages

• Reverse auctions should be used in situations where relationships are not important


• Suppliers will not be able to meet the same level of cost savings over time

Training issues

Answer to Question 2

You could consider a variation of the English auction where each stakeholder group submits a bid. The group with the winning bid would then be assigned the highest priority and would then be able to choose its block of parking spaces.