Course Outline

First Session: The first session will provide an overview of procurement, emphasizing its importance, supplier relationships, and the sourcing process. It will also introduce the concept of value-based sourcing. In the second half of the session, participants will learn about value risk mapping, the significance of categorizing suppliers, and developing tailored strategies for each group. The session will cover when and why outsourcing is necessary, as well as how to address price volatility and supply chain variability through effective contract management.

Second Session: The second session will focus on optimizing procurement activities, specifically the balance between purchase costs and service levels. Participants will engage in hands-on exercises using optimization and linear programming to develop minimum cost models that consider service level requirements. The session will also explore different product offerings, including normal bids, minimum volume bids, and volume discounts. Extensive use of Microsoft Excel will be required to develop and optimize these models, providing participants with valuable insights into the trade-offs involved in selecting an offer.

Third Session: The third session will address supply chain coordination, highlighting the challenges posed by demand variability and a lack of information sharing among supply chain partners. In the context of uncertainty, procurement and supply chain managers must mitigate the effects of information delays, which can lead to the bullwhip effect. This session will delve into the causes and impacts of the bullwhip effect on the supply chain and discuss strategies for reducing its risk among partners.

In the latter half of the session, participants will explore the uncertainties associated with customer demand. They will develop simulation models to represent these uncertainties and devise solutions to manage them effectively. This session will provide a deep understanding of how trust can enhance revenue maximization for supply chain partners, offering valuable insights for government operations.

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 7 Hours

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