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planations below.
Sometimes we operate a sole supplier contract
(1) whereby
we use only one supplier for a fixed period. Generally, however,
we prefer to use a large number of suppliers
(2) from our approved
suppliers’ list. We usually place single orders at a negotiated price
(3), but sometimes we get involved in advance orders at a fixed
price (4) for certain commodities.
Apart from ordering, I have to put out orders for tender
(5),
arrange reciprocal trading
(6) and maintain our own company’s
reputation
(7) in the marketplace.
a) multiple sourcing;
b) standing;
c) return contracts;
d) buying forward/speculative buying;
e) spot orders;
f) single sourcing;
g) encourage competitive bids.
EXERCISE 5. The department’s performance
A. Mr. Vennonen, the company’s Public Relations Assistant,
is interviewing the Production Supervisor for an article on prod-
uctivity for the company newsletter.
Read the text.
Text
Well, I can give you a few figures which may help you – for
example, we run our machines at 150 hours per week at a
throughput of 44 units per hour. On average we produce 355 fi-
nished articles per shift. So weekly output is over 6,500 units. Our
machine utilization is very good – an average of 86,5%, that is,
9% better than the average for last year.
Every month we have supervision and maintenance costs of
about £68,000. Nevertheless, last month we had a profit of
£ 104,000 which is 6.3% up on the previous month.
B. Mr. Vennonen’s boss, the company Public Relations Offic-
70
planations below.
Sometimes we operate a sole supplier contract (1) whereby
we use only one supplier for a fixed period. Generally, however,
we prefer to use a large number of suppliers (2) from our approved
suppliers’ list. We usually place single orders at a negotiated price
(3), but sometimes we get involved in advance orders at a fixed
price (4) for certain commodities.
Apart from ordering, I have to put out orders for tender (5),
arrange reciprocal trading (6) and maintain our own company’s
reputation (7) in the marketplace.
a) multiple sourcing;
b) standing;
c) return contracts;
d) buying forward/speculative buying;
e) spot orders;
f) single sourcing;
g) encourage competitive bids.
EXERCISE 5. The department’s performance
A. Mr. Vennonen, the company’s Public Relations Assistant,
is interviewing the Production Supervisor for an article on prod-
uctivity for the company newsletter.
Read the text.
Text
Well, I can give you a few figures which may help you – for
example, we run our machines at 150 hours per week at a
throughput of 44 units per hour. On average we produce 355 fi-
nished articles per shift. So weekly output is over 6,500 units. Our
machine utilization is very good – an average of 86,5%, that is,
9% better than the average for last year.
Every month we have supervision and maintenance costs of
about £68,000. Nevertheless, last month we had a profit of
£ 104,000 which is 6.3% up on the previous month.
B. Mr. Vennonen’s boss, the company Public Relations Offic-
70
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