Test 2: CHAPTER 5, 6

CHAPTER 5, 6

Q1: Define "direct materials" and "indirect materials". List reasons for a large company having two separate departments to manage the purchasing of each.

The raw materials used in the creation of the final product. Direct material is a direct cost and includes any raw material that ends up as a part of the final product. Example for direct materials is laptop.

Indirect Materials is any material that is not part of the finished product or used to make the product. Consumables such as cleaning chemicals, disposable tools, protective devices not used as raw materials, but which make the production of a good or service possible, more efficient, or safer.

The reasons for a large company having two separate departments to manage the purchasing of each was because the large companies used to have the separate departments for the direct and indirect material because indirect material also known as marketing, this is everything that company do to reach and persuade prospects. The sales or known as direct material, this is everything that company do to close the sale and get a signed agreement or contract. Both are necessities to the success of a business. The company cannot do without either process. By strategically combining both efforts company will experience a successful amount of business growth.



Q2: In about 200 words, describe the reasons a buyer might have for wanting to participate in an industry consortium marketplace instead of setting up its own private company marketplace.

An industry consortium marketplace is when a group that has similar goals comes together to rise above others. An industry consortium can also be known as a partnership, joint venture or partner share. These partnerships can be very easy to establish. At the same time, an industry consortium marketplace can also have its disadvantages.

On the other hand, a buyer might also want to participate in an industry consortium market instead of setting up its own private company marketplace because of large investments, its may benefit from the combination of complimentary skills of two or more people. There is a wider knowledge, skills and contacts. Share holding pattern reduces business risk. It also can be cost-effective as each partner specializes in certain aspects of their business. Provide moral support and will allow for more creative brainstorming. Responsibilities is shared.

The disadvantages was since decisions are shared, disagreements can occur. A partnership is for the long term, and expectations and situations can change, which can lead to dramatic. The partnership may have a limited life; it may end upon the withdrawal or death of a partner. Business partners are jointly and individually liable for the actions of the other partners.

Conclusion

An industry consortium marketplace have the advantages and can also have the disadvantages. In a partnership there must be understanding, to share the same ideas, opinions and decisions so that no conflict occurs.

Q3: Which industries were the first to establish standard RFID technology? In about 100 words, state why, in your opinion, these industries were more interested in RFID tag technology than other industries.

Radio Frequency Identification (RFID) is a generic term that used to describe a system that transmit the identity ( in the form of a unique serial number) of an object or person wirelessly, using radio waves. Its grouped category of automatic identification technologies. RFID system is to enable data to be transmitted by a portable device called a tag which is read by the tag may provide identification or location information or specifics about the product tagged such as price, color, date of purchase, etc. RFID technology has been used by thousands of companies for a decade. RFID quickly gained attention because of its ability to track moving objects.

Unlike barcode technology, RFID technology does not require contact or line of sight for communication. RFID data can be read through the human body, clothing and non-metallic materials. For example vehicle access control. Cars, trucks or other vehicles can be tagged with passive RFID transmitters. When a restricted area, or a parking lot entrance, is approached, a reader at the site accesses the tag. If the vehicle is authorized the gate opens and it is allowed to pass. The mechanism works in pass or fail mode, access granted or access denied. However, if the data from the tag can be connected with a database, functionality of the system is greatly enhanced. It is not practical or cost effective to locate a PC at each entry point where an FRID reader and the gate control mechanism are located. As both require to a gate control a connection to communicate with a computer, making input from them available across a network once required just that.

Conclusion

There are many companies around the world use RFID today to improve internal effiencies and many other companies are using RFID for a variety of applications.