Subject: Business and Management
Language: English (U.S.)
Pages: 1
1)Under what conditions can purchasing agents be held personally responsible for abusing their position? (100 words Max) 2) What are main characteristics of a lean supply chain? What are the barriers to a lean supply chain systems? (Barriers are discussed on page 626 of text book. Due to time limitations we were not able to cover them in detail in the class.

Purchasing Law and Ethics

1.     There are several sources of personal liability for a purchasing agent. A purchasing agent may be held personally responsible when his activities are beyond the scope of the authority he was granted by the company he represents. He may also be held responsible when he participates in any illegal activities without the consent of the company. Personal liability may also arise from a purchasing agent violating the protection of assets owned by others and the company. The use of deception in serving self-interest may also invoke personal liability.

The main characteristics of a lean supply chain include continuous flow or movement of goods throughout the supply chain without queuing, the quality is perfect, and the customer initiates the work process, which transpires throughout the supply chain. A lean supply chain system ensures that the quality of the product is maintained, and that there are no delays in production and distribution. Barriers to a lean supply chain system include unreliable suppliers, inaccurate demand forecasts, poor quality, and low material yield from the inventory. Another barrier to a lean supply chain system is delayed order cycle times due to issues in global sourcing