156 Purchasing and Supply Management 5. What are some effective supply methods for dealing with maintenance, repair, and operating (MRO) requirements? 6. Compare the acquisition of resale requirements to the acquisition of parts, components, or packaging. 7. Why should a supply professional acquire by “brand”? 8. What are the disadvantages of specifying by performance? What are the advantages? 9. What is the difference between standardization and simplification? 10. How does a supply professional know that a certain requirement is strategic? 11. How would you determine the environmental impact of a particular acquisition? American National Standards Institute, www.ansi.org. Askin, Ronald G., and Jeffrey B. Goldberg. Design and Analysis of Lean Production Systems, New York: Wiley, 2001. Axelsson, Bjorn, and Finn Wynstra. Buying Business Services. West Sussex, U.K.: John Wiley & Sons, 2002. Contino, Richard. The Complete Equipment-Leasing Handbook. New York: AMACOM, 2002. Duffy, Roberta J., and Anna E. Flynn. “Services Purchases: Not Your Typical Grind.” Inside Supply Management 14, no 9, September 2003, p. 28. Ellram, L. M.; W. L.; Tate and C. Billington. “Understanding and Managing the Services Supply Chain.” Journal of Supply Chain Management 40, no. 3 (2004), pp. 17–32. Managing Your “Service Spend” in Today’s Service Economy. CAPS Research, July 22, 2003. Ritzman, Larry P.; Lee J. Krajewski; and Robert D Klassen. Foundations of Operations Management. Pearson Prentice Hall: Toronto, 2004. Smeltzer, Larry A., and Jeffrey A. Ogden. “Purchasing Professions’ Perceived Differences between Purchasing Materials and Purchasing Services.” Journal of Supply Chain Management 38, no. 1, Winter 2002, p. 54. Wade, D. S. Managing Your “Services Spend” in Today’s Services Economy. Tempe, AZ: CAPS Research, 2003. References Case 6–1 Moren Corporation (A) Moren Corporation was building three additional generation stations to serve its rapidly expanding energy market. To link these stations with a total area grid, a new method of car- rying the power lines using ornamental tubular poles instead of towers had been adopted. Moren had had no previous op- erating experience with poles and decided to subcontract the design engineering, fabrication, and erection of the new line. For the first phase of engineering design, Mr. Carter, the vice president of supply, faced the responsibility of de- ciding with which supplier the business was to be placed after his staff had developed the information needed. He was aware that Moren had only three years in which to complete the entire project, and yet he had to ensure high- quality work. joh77899_ch06_135-164.indd 156 6/9/10 9:40 PM Chapter 6 Need Identifi cation and Specifi cation 157 COMPANY BACKGROUND Moren Corporation, established in 1895, was one of the largest power utilities in the eastern United States. It serviced a highly industrialized area of 1 ...