The two contract services listed at the top of this table are particularly important to Main Street Cinema in that they require Main Street to entrust its facility to person- nel sent by the other companies it hires for these services. Upholstery and carpet cleaning, while only purchased four times a year, is particularly worrisome to Main Street Cinema, because the supplier of this service must work overnight to complete the cleaning, and any problems during that work can force Main Street Cinema into closing the following business day and losing all sales revenue. a. In the spend analysis, which category of spending best fits the description of strategic critical purchasing in the supplier positioning model? b. In the spend analysis, which category of spending best fits the description of strategic security purchasing in the supplier positioning model? c. In the spend analysis, which two categories of spending best fit the description of tactical profit purchasing in the supplier positioning model? d. In the spend analysis, which category of spending best fits the description of tactical acquisition purchasing in the supplier positioning model?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 30P
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Main Street Cinema is a single-screen movie theater in a residential area. Main Street
Cinema is a licensed exhibitor of Mega Pictures Distribution Company, meaning that
it receives all its movies from and pays all rental fees to this larger corporation, as
per the license agreement. Otherwise, Main Street Cinema is a small business that
spends a considerable amount of money each year purchasing a wide variety of
products from suppliers. Last year's spend analysis revealed the following:
Main Street Cinema Purchasing Categories
(Excluding Exhibition Fees to Mega Pictures)
Annual Expenditure
Daily janitorial services
$83,000
Upholstery and carpet cleaning
$28,000
Soft drinks
$25,000
Popcorn and candy
$33,000
Toilet paper and liquid soap for public restrooms
$750
The two contract services listed at the top of this table are particularly important to
Main Street Cinema in that they require Main Street to entrust its facility to person-
nel sent by the other companies it hires for these services. Upholstery and carpet
cleaning, while only purchased four times a year, is particularly worrisome to Main
Street Cinema, because the supplier of this service must work overnight to complete
the cleaning, and any problems during that work can force Main Street Cinema into
closing the following business day and losing all sales revenue.
a. In the spend analysis, which category of spending best fits the description of
strategic critical purchasing in the supplier positioning model?
b. In the spend analysis, which category of spending best fits the description of
strategic security purchasing in the supplier positioning model?
c. In the spend analysis, which two categories of spending best fit the description
of tactical profit purchasing in the supplier positioning model?
d. In the spend analysis, which category of spending best fits the description of
tactical acquisition purchasing in the supplier positioning model?
Transcribed Image Text:Main Street Cinema is a single-screen movie theater in a residential area. Main Street Cinema is a licensed exhibitor of Mega Pictures Distribution Company, meaning that it receives all its movies from and pays all rental fees to this larger corporation, as per the license agreement. Otherwise, Main Street Cinema is a small business that spends a considerable amount of money each year purchasing a wide variety of products from suppliers. Last year's spend analysis revealed the following: Main Street Cinema Purchasing Categories (Excluding Exhibition Fees to Mega Pictures) Annual Expenditure Daily janitorial services $83,000 Upholstery and carpet cleaning $28,000 Soft drinks $25,000 Popcorn and candy $33,000 Toilet paper and liquid soap for public restrooms $750 The two contract services listed at the top of this table are particularly important to Main Street Cinema in that they require Main Street to entrust its facility to person- nel sent by the other companies it hires for these services. Upholstery and carpet cleaning, while only purchased four times a year, is particularly worrisome to Main Street Cinema, because the supplier of this service must work overnight to complete the cleaning, and any problems during that work can force Main Street Cinema into closing the following business day and losing all sales revenue. a. In the spend analysis, which category of spending best fits the description of strategic critical purchasing in the supplier positioning model? b. In the spend analysis, which category of spending best fits the description of strategic security purchasing in the supplier positioning model? c. In the spend analysis, which two categories of spending best fit the description of tactical profit purchasing in the supplier positioning model? d. In the spend analysis, which category of spending best fits the description of tactical acquisition purchasing in the supplier positioning model?
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