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Purchasing and Supply Management Response

Essay Question 2:

You are part of an Acquisition program for a major government organization. Due to the trend in the recent economy, all government organizations have seen a steep decline in future budgets. As such, the director has stated that all future program acquisitions must have low cost as the number one Priority. The real translation of this is that "nothing" is more important than cost reduction. As a seasoned acquisition professional you are certain this will only doom your organization since you know all acquisition programs are a fine mix of Cost, Schedule, and Performance. Detail how you would explain to the Director what this fine balance of Cost, Schedule, and Performance means.

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In my discussion with the Director, I would try to explain how Cost, Schedule, and Performance are all dependent on each other and that all variables change if even one has been altered. While low cost may seem like the most important factor in acquisition, making this a priority can cost the government quality of work or timely delivery. In terms of schedule, if the mission essential product has to be provided within a strict schedule, this may alter the end cost. For example, if you need 20 boiler valves shipped to a base ...

Solution Summary

This is a purchasing and supply management scenario requiring an essay response. Question 2 of 5.