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 Purchasing & Supply Chain Management, © 2021, 2016 Cengage Learning, Inc.
7th Edition WCN: 02-300
Robert M. Monczka, Robert B. Handfield,
Unless otherwise noted, all content is © Cengage.
Larry C. Giunipero, James L. Patterson
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 To Shirley, Kathleen, Thomas, and Elliana

Robert M. Monczka

To Sandi, Simone, Luc, and my mom and dad

Robert B. Handfield

To Frank, Tressa, Jan, Matthew, Michael, Amanda, and the memory of my sister Maryetta

Larry C. Giunipero

To Diane; Lindsay, Karl, Seth, Luke, and Norah; and Drew, Laura, Elliott, and Shiloh

James L. Patterson

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 Brief Contents
Preface xxiv
About the Authors xxxii

Part 1 Introduction 1
Chapter 1 Introduction to Purchasing and Supply Chain Management 2

Part 2 Purchasing Operations and Structure 39

Chapter 2 The Purchasing Process 40
Chapter 3 Purchasing Policy and Procedures 86
Chapter 4 Supply Management Integration for Competitive Advantage 114
Chapter 5 Purchasing and Supply Management Organization 158

Part 3 Strategic Sourcing 193

Chapter 6 Category Strategy Development 194
Chapter 7 Supplier Evaluation and Selection 249
Chapter 8 Supplier Quality Management 290
Chapter 9 Supplier Management and Development: Creating a
World-Class Supply Base 326
Chapter 10 Worldwide Sourcing 366

Part 4 Strategic Sourcing Process 409

Chapter 11 Strategic Cost Management 410
Chapter 12 Purchasing and Supply Chain Analysis: Tools
and Techniques 461
Chapter 13 Negotiation and Conflict Management 497
Chapter 14 Contract Management 535
Chapter 15 Purchasing Law and Ethics 581

Part 5 Critical Supply Chain Elements 627

Chapter 16 Lean Supply Chain Management 628
Chapter 17 Purchasing Services 669
Chapter 18 Supply Chain Information Systems and Electronic
Sourcing 710
Chapter 19 Performance Measurement and Evaluation 757

iv

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 Brief Contents v

Part 6 Future Directions 795

Chapter 20 Purchasing and Supply Strategy Trends 796

Cases 833
Case 1 Avion Inc. 834
Case 2 The Global Sourcing Wire Harness Decision 837
Case 3 Managing Supplier Quality: Integrated Devices 839
Case 4 Negotiation—Porto 842
Case 5 Purchasing Ethics 843
Case 6 Insourcing/Outsourcing: The FlexCon Piston Decision 846
Case 7 Email Exercise 857

Index 859

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 Contents
Preface xxiv
About the Authors xxxii

Part 1 Introduction 1
Chapter 1 Introduction to Purchasing and Supply Chain Management 2
1-1 Introduction 5
1-2 A New Competitive Environment 6
1-3 Managing the Supply Base 8
1-4 Why Purchasing Is Important 8
1-4a Increasing Value and Savings 8
1-4b Building Relationships and Driving Innovation 8
1-4c Improving Quality and Reputation 9
1-4d Reducing Time to Market 9
1-4e Managing Supplier Risk 10
1-4f Generating Economic Impact 10
1-4g Contributing to Competitive Advantage 10
1-5 Understanding the Language of Purchasing
and Supply Chain Management 11
1-5a Purchasing and Supply Management 11
1-5b Supply Chains and Value Chains 13
1-5c Supply Chains Illustrated 15
1-6 Achieving Purchasing and Supply Chain Benefits 16
1-7 The Supply Chain Umbrella-Functional Activities 18
1-7a Purchasing 18
1-7b Inbound Transportation 18
1-7c Quality Control 18
1-7d Demand and Supply Planning 19
1-7e Receiving, Materials Handling, and Storage 19
1-7f Materials or Inventory Control 19
1-7g Order Processing 19
1-7h Production Planning, Scheduling, and Control 19
1-7i Shipping/Warehousing/Distribution 19
1-7j Outbound Transportation 20
1-7k Customer Service 20
1-8 Four Enablers of Purchasing and Supply Chain
Management 20
1-8a Capable Human Resources 20
1-8b Proper Organizational Design 22
1-8c Real-Time Collaborative Technology Capabilities 23
1-8d Right Measures and Measurement Systems 24
vi

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 Contents vii

1-9 The Evolution of Purchasing and Supply Chain

Management 24
1-9a Period 1: The Early Years (1850–1900) 24
1-9b Period 2: Growth of Purchasing Fundamentals
(1900–1939) 25
1-9c Period 3: The War Years (1940–1946) 26
1-9d Period 4: The Quiet Years (1947–Mid-1960s) 26
1-9e Period 5: Materials Management Era
(Mid-1960s–Late 1970s) 27
1-9f Period 6: The Global Era (Late 1970s–1999) 27
1-9g Period 7: Integrated Supply Chain Management
and Technology (2000–2025) 28
1-10 Looking Ahead 28

Part 2 Purchasing Operations and Structure 39

Chapter 2 The Purchasing Process 40
2-1 Introduction 42
2-2 Purchasing Objectives 43
2-2a Objective 1: Supply Assurance 43
2-2b Objective 2: Manage the Procure-to-Pay Process
Efficiently and Effectively 44
2-2c Objective 3: Supplier Performance Management 44
2-2d Objective 4: Develop Aligned Goals with
Internal Stakeholders 45
2-2e Objective 5: Develop Integrated Supply Strategies
That Support Business Goals and Objectives 45
2-3 Strategic Supply Management Roles and
Responsibilities 46
2-3a Spend Analysis 48
2-3b Demand Management and Specifications/SOWs 48
2-3c Category Management and Supplier Evaluation
/Selection 49
2-3d Contract Management 50
2-3e Cost Management 50
2-3f Managing the Procure-to-Pay Process 51
2-3g Supplier Relationship Management 51
2-3h Establish a Supply Management Strategy 51
2-4 Improving the Procure-to-Pay Process 52
2-4a Forecast and Plan Requirement 56
2-4b Needs Clarification: Requisitioning 56
2-4c Purchase Requisitions/Statement of Work 57
2-4d Traveling Purchase Requisitions/Bar Codes 59
2-4e Forecasts and Customer Orders 59
2-4f Reorder Point System 59
2-4g Stock Checks 60
2-4h Cross-Functional Sourcing Teams 62
2-4i Description 62

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viii Contents

2-4j Supplier Identification and Selection 63

2-4k Bidding or Negotiating? 64
2-4l Request for Quotation 65
2-4m Specifications or Blueprints 65
2-4n Evaluate Suppliers 66
2-5 Approval, Contract, and Purchase Order
Preparation 66
2-5a Purchase Order 66
2-5b Blanket Purchase Order 69
2-5c Material Purchase Release 71
2-5d Receipt and Inspection 71
2-5e Material Packing Slip 72
2-5f Bill of Lading 72
2-5g Receiving Discrepancy Report 73
2-5h Invoice Settlement and Payment 73
2-5i Records Maintenance 73
2-5j Continuously Measure and Manage Supplier
Performance 73
2-5k Reengineering the Procure-to-Pay Process 74
2-6 Types of Purchases 77
2-6a Raw Materials 77
2-6b Semifinished Products and Components 77
2-6c Production Support Items 78
2-6d Services 78
2-6e Capital Equipment 79
2-6f Transportation and Third-Party Purchasing 79
Chapter 3 Purchasing Policy and Procedures 86
3-1 Introduction 88
3-2 Policy Overview 88
3-2a What Are the Advantages and Disadvantages
of Policies? 88
3-2b What Makes for an Effective Policy? 89
3-3 Purchasing Policies—Providing Guidance
and Direction 89
3-3a Policies Defining the Role of Purchasing 89
3-3b Policies Defining the Conduct of Purchasing
Personnel 91
3-3c Policies Defining Social and Minority Business
Objectives 96
3-3d Corporate Social Responsibility 101
3-3e Policies Defining Buyer-Seller Relationships 104
3-3f Other Policies Dealing with Buyer-Seller
Relations 107
3-3g Policies Defining Operational Issues 107
3-4 Purchasing Procedures 109
3-4a Purchasing Procedural Areas 110

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 Contents ix

Chapter 4 Supply Management Integration for Competitive Advantage 114

4-1 Introduction 117
4-2 Integration: What Is It? 119
4-3 Internal Integration 121
4-3a Supply Management Internal Linkages 121
4-4 External Integration 126
4-4a Supply Management’s External Linkages 126
4-4b Collaborative Buyer–Seller Relationships 127
4-4c Advantages of Closer Buyer–Seller Relationships 128
4-4d Obstacles to Closer Buyer–Seller Relationships 128
4-4e Critical Elements for Supplier Relationship
Management 130
4-5 The Critical Role of Cross-Functional Sourcing Teams 132
4-5a Benefits Sought from the Cross-Functional Team
Approach 132
4-5b Potential Drawbacks to the Cross-Functional
Team Approach 135
4-5c When to Form a Cross-Functional Team 135
4-5d Improving Sourcing Team Effectiveness 136
4-6 Integrating Supply Management, Engineering,
and Suppliers to Develop New Products and Services 140
4-6a Common Themes of Successful Supplier
Integration Efforts 141
4-6b Supplier Integration into Customer Order
Fulfillment 147
4-6c Supplier Suggestion Programs 147
4-6d Buyer–Seller Improvement Teams 148
4-6e On-Site Supplier Representative 148
4-7 Potential Benefits of On-Site Supplier Representatives 150
Chapter 5 Purchasing and Supply Management Organization 158
5-1 Introduction 162
5-2 P/SM Organizational Structure 163
5-3 Location of Authority Centralized or Decentralized 164
5-3a Drivers Influencing the Adoption of Centralized,
Center-Led, or Decentralized Structures 164
5-3b Advantages of Centralized/Center-Led Purchasing
Structures 165
5-3c Advantages of Decentralized Purchasing 167
5-3d Organizational Mechanisms to Enable Center-Led
Organization Design 168
5-4 Purchasing’s Position within the Organizational
Structure 173
5-4a To Whom Does Purchasing/Supply Management
Report? 174
5-4b Factors Affecting Purchasing’s Position in the
Organizational Hierarchy 174

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x Contents

5-5 Scope of the Purchasing/Supply Management

Job Function 176
5-5a Sourcing, Negotiation, and Contract
Management 176
5-5b Market Intelligence and Research 176
5-5c Operational Support and Follow-Up 177
5-5d Administration and Data Management 177
5-6 Purchasing/Supply Management Job Tasks 177
5-6a Buying 177
5-6b Expediting 177
5-6c Inventory Control 178
5-6d Transportation 178
5-6e Insourcing/Outsourcing 178
5-6f Value Analysis 178
5-6g Purchasing Research/Materials Forecasting 178
5-6h Supply Management 179
5-6i Other Responsibilities 179
5-7 Separating Strategic and Operational
Purchasing 179
5-8 Using Teams as Part of the Organizational Structure 180
5-9 Supply Chain Management Structure 181
5-10 Future Trends in Organizational Design 183

Part 3 Strategic Sourcing 193

Chapter 6 Category Strategy Development 194
6-1 Introduction 197
6-2 Aligning Supply Management and Enterprise
Objectives 197
6-2a Integrative Strategy Development 199
6-2b Engaging Stakeholders to Build Category
Strategy Objectives 200
6-3 What Is a Category Strategy? 203
6-3a Difference between Category Strategies
and Strategic Sourcing 204
6-3b Conducting a Spend Analysis 205
6-3c Spend Analysis Spreadsheet 206
6-4 Category Strategy Development 212
6-4a Step 1: Build the Team and the
Project Charter 212
6-4b Step 2: Conduct Market Intelligence
Research on Suppliers 217
6-4c Step 3: Strategy Development Process 223
6-4d Step 4: Process 228
6-4e Step 5: Contract Negotiation 231
6-4f Step 6: Supplier Relationship Management 232

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 Contents xi

6-5 Types of Supply Management Strategies 233

6-5a Insourcing/Outsourcing 234
6-5b Supply-Base Optimization 234
6-5c Supply Risk Management 234
6-5d Early Supplier Design Involvement 238
6-5e Supplier Development 239
6-5f Total Cost of Ownership 239
6-5g E-Reverse Auctions 239
6-6 Supply Management Transformation
Evolution 241
6-6a Phase 1: Basic Beginnings 241
6-6b Phase 2: Moderate Development 242
6-6c Phase 3: Limited Integration 242
6-6d Phase 4: Fully Integrated Supply Chains 242
6-6e Observations on Supply Management
Strategy Evolution 243
Chapter 7 Supplier Evaluation and Selection 249
7-1 Introduction 252
7-2 The Seven-Stage Supplier Evaluation and
Selection Process 253
7-3 Recognize the Need for Supplier Selection—Stage 1 253
7-4 Identify Key Sourcing Requirements—Stage 2 254
7-5 Identify Potential Supply Sources—Stage 3 255
7-5a Current Suppliers 255
7-5b Sales Representatives 255
7-5c Internet Searches and Social Media 255
7-5d Informational Databases 255
7-5e Organizational Knowledge 256
7-5f Trade Journals 256
7-5g Trade Directories 256
7-5h Trade Shows 257
7-5i Professional Associations and Published
Information 257
7-5j Internal Sources 257
7-5k Supplier-Provided Information 260
7-6 Determine Sourcing Strategy—Stage 4 260
7-6a Consider Sourcing Alternatives 260
7-6b Categorize Suppliers for Multiple or Single
or Sole Sourcing 261
7-6c Evaluate Critical Selection Issues 262
7-7 Limit Suppliers in the Selection Pool—Stage 5 264
7-7a Supplier Risk Management 264
7-7b Evaluation of Supplier Performance 267
7-7c Third-Party Provider Information 267
7-7d Supplier Visits 267

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xii Contents

7-8 Conduct a Detailed Review of Supplier Evaluation

Criteria—Stage 6 268
7-8a Management Capability 268
7-8b Employee Capabilities 269
7-8c Cost Structure 269
7-8d Total Quality Performance, Systems, and
Philosophy 270
7-8e Process and Technological Capability 270
7-8f Sustainability and Environmental Compliance 270
7-8g Financial Stability 271
7-8h Scheduling and Control Systems 274
7-8i E-Commerce Capability 275
7-8j Supplier’s Sourcing Strategies, Policies, and
Techniques 275
7-8k Longer-Term Relationship Potential 276
7-9 Select Supplier and Reach Agreement—Step 7 276
7-10 Developing a Quantitative Supplier Evaluation Survey 276
7-10a Step 1: Identify Supplier Evaluation Categories 277
7-10b Step 2: Assign a Weight to Each Evaluation
Category 278
7-10c Step 3: Identify and Weigh Subcategories 278
7-10d Step 4: Define a Scoring System for Categories
and Subcategories 278
7-10e Step 5: Evaluate Supplier Directly 280
7-10f Step 6: Review Evaluation Results and Make
Selection Decision 280
7-10g Step 7: Review and Improve Supplier
Performance Continuously 282
7-11 Reducing Supplier Evaluation and Selection
Cycle Time 282
7-11a Map the Current Supplier Evaluation and Selection
Process 282
7-11b Integrate with Internal Customers 283
7-11c Data Warehouse Software with Supplier
Information 283
7-11d Third-Party Support 283
7-11e Integrating Technology into
Organizational Design 283
7-11f Supplier Categorization 283
7-11g Electronic Tools 284
7-11h Predefined Contract Language and Shorter
Contracts 284
Chapter 8 Supplier Quality Management 290
8-1 Introduction 291
8-2 Overview of Supplier Quality Management 292
8-2a What Is Supplier Quality? 292
8-2b Why Be Concerned with Supplier Quality? 293

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 Contents xiii

8-3 Factors Affecting Supply Management’s Role

in Managing Supplier Quality 294
8-4 Supplier Quality Management Using a Total Quality
Management Perspective 296
8-4a Defining Quality in Terms of Customers and Their
Requirements 297
8-4b Deming’s 14 Points 298
8-4c Pursuing Quality at the Source 301
8-4d Stressing Objective Rather Than Subjective
Measurement and Analysis 302
8-4e Emphasizing Prevention Rather Than Detection of
Defects 303
8-4f Focusing on Process Rather Than Output 303
8-4g Basics of Process Capability 305
8-4h Striving for Zero Defects 306
8-4i Cost of Quality 307
8-4j The Seven Wastes 308
8-4k Establishing Continuous Improvement as a Way
of Life 309
8-4l Making Quality Everyone’s Responsibility 310
8-5 Pursuing Six Sigma Supplier Quality 312
8-6 Using ISO Standards and MBNQA Criteria to Assess
Supplier Quality Systems 314
8-6a ISO 9001 Standards 314
8-6b ISO 14001 Standards 316
8-6c The Malcolm Baldrige National Quality Award 317
8-7 Basic Contents of a Supplier Quality Manual 318
Chapter 9 Supplier Management and Development: Creating a World-Class
Supply Base 326
9-1 Introduction 328
9-2 Supplier Performance Measurement 328
9-2a Supplier Measurement Decisions 328
9-2b Types of Supplier Measurement Techniques 331
9-3 Rationalization and Optimization: Creating a Manageable
Supply Base 336
9-3a Advantages of a Rationalized and Optimized
Supply Base 336
9-3b Possible Risks of Maintaining Fewer Suppliers 338
9-3c Formal Approaches to Supply Base
Rationalization 340
9-3d Summary of Supplier Rationalization
and Optimization 341
9-4 Supplier Development: A Strategy for Improvement 342
9-4a A Process Map for Supplier Development 343
9-5 Overcoming the Barriers to Supplier Development 345
9-5a Buyer-Specific Barriers 346

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xiv Contents

9-5b Buyer-Supplier Interface Barriers 347

9-5c Supplier-Specific Barriers 348
9-5d Lessons Learned from Supplier Development 349
9-6 Managing Supply Base Risk 350
9-6a Introduction to Supply Chain Risk and Fraud 350
9-6b Categories of Supply Chain Risk 351
9-6c Supply Chain Risk Mitigation 353
9-6d Managing Supply Chain Fraud 356
9-6e Mitigating Supply Chain Fraud 358
9-7 Managing Sustainability in the Supply Base 358
Chapter 10 Worldwide Sourcing 366
10-1 Globalization—Changing Supply Strategy
in a Dynamic World Economy 369
10-2 Changing Global Dynamics Create Challenges 371
10-3 Worldwide Sourcing Timeline 373
10-3a Why Source Worldwide? 375
10-3b Barriers to Worldwide Sourcing 378
10-4 Developing a Worldwide Sourcing Program 381
10-4a Information about Worldwide Sources 381
10-4b Types of Intermediaries and Organization
for Worldwide Sourcing 382
10-4c Organizational Issues—International
Purchasing Offices 383
10-4d Supplier Qualification and Selection Issues 384
10-4e Understanding Cultural Issues 385
10-4f Language and Communication Differences 385
10-4g Legal Systems 389
10-4h Countertrade Requirements 391
10-4i Evaluating Costs Associated with International
Purchasing 394
10-4j Managing Currency Risks 396
10-5 Moving to a Global Sourcing Philosophy 398
10-5a Factors Driving Successful Global Sourcing
Programs 400
10-5b Future Global Sourcing Trends 403

Part 4 Strategic Sourcing Process 409

Chapter 11 Strategic Cost Management 410
11-1 Introduction 412
11-2 A Structured Approach to Cost Reduction 413
11-3 Price Analysis 419
11-3a Market Structure 419
11-3b Economic Conditions 420
11-3c Pricing Strategy of the Seller 421
11-3d Market-Driven Pricing Models 422

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 Contents xv

11-3e Using the Producer Price Index to Manage

Price 426
11-4 Cost Analysis Techniques 429
11-4a Cost-Based Pricing Models 429
11-4b Product Specifications 430
11-4c Estimating Supplier Costs Using Reverse
Price Analysis: (“Should Cost Analysis”) 431
11-4d Break-Even Analysis 434
11-4e Break-Even Analysis Example 438
11-5 Building a Should-Cost Model 439
11-5a Step 1: Conceptual Design 441
11-5b Step 2: Refine and Derive Elements of the
Cost Model 442
11-5c Step 3: Design and Construction of Cost
Model 442
11-5d Step 4: Identify Data Sources for the Model 444
11-5e Supplier-Provided Data 444
11-6 Total Cost of Ownership (TCO) 445
11-6a Building a Total Cost of Ownership Model 446
11-6b The Importance of Opportunity Costs 447
11-6c Important Factors to Consider When Building
a TCO Model 449
11-6d Example of a TCO Model 449
11-7 Collaborative Approaches to Cost Management 450
11-7a Target Pricing Defined 450
11-7b Cost-Savings Sharing Pricing Defined 451
11-7c Prerequisites for Successful Target and
Cost-Based Pricing 452
11-7d When to Use Collaborative Cost Management
Approaches 452
11-7e An Example of Target Pricing and Cost-Savings
Sharing 453
Chapter 12 Purchasing and Supply Chain Analysis: Tools and
Techniques 461
12-1 Introduction 463
12-2 Project Management 465
12-2a Defining Project Success 466
12-2b Project Phases 466
12-2c Project Planning and Control Techniques 469
12-2d Rules for Constructing a Project Management
Network 471
12-2e Project Management Example: Sourcing
Strategy 472
12-2f Project Management with Time Estimates 473
12-3 Learning-Curve Analysis 477
12-3a Components of the Learning or
Experience Curve 478

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xvi Contents

12-3b When to Use the Learning Curve 478

12-3c Learning Curve Illustrated 479
12-3d Learning-Curve Problem 480
12-4 Value Analysis/Value Engineering 480
12-4a Who Is Involved in Value Analysis? 482
12-4b Tests for Determining Value in a Product or
Service 483
12-4c The Value Analysis Process 483
12-5 Quantity Discount Analysis 484
12-5a Quantity Discount Analysis Illustrated 485
12-6 Process Mapping 487
12-7 Value Stream Mapping 489
Chapter 13 Negotiation and Conflict Management 497
13-1 Introduction 499
13-2 What Is Negotiation? 500
13-3 The Negotiation Framework in Supply Management 503
13-3a Identify or Anticipate the Sourcing
Requirement 504
13-3b Determine If Negotiation or Competitive Bidding
Is Required 504
13-3c Plan for the Negotiation 506
13-3d Conduct the Negotiation 507
13-3e Execute and Follow-Up on the Agreement 508
13-4 Negotiation Planning 509
13-4a Develop Specific Objectives 509
13-4b Analyze Each Party’s Strengths and
Weaknesses 510
13-4c Gather Relevant Information 510
13-4d Recognize Your Counterpart’s Needs 511
13-4e Identify Facts and Issues 511
13-4f Establish a Position on Each Issue 511
13-4g Develop the Negotiation Strategy and
Accompanying Tactics 513
13-4h Brief Other Stakeholders 513
13-4i Practice the Negotiation 513
13-4j Using Force Field Analysis as a Planning Tool 514
13-5 Power in Negotiation 514
13-5a Sources of Negotiation Power 514
13-6 Concessions 516
13-7 Negotiation Tactics: Trying to Reach Agreement 518
13-8 Win-Win Negotiation 520
13-9 International Negotiation 524
13-10 Selected Countries 526
13-10a Brazil 526
13-10b China 527

Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
 Contents xvii

13-10c France 527

13-10d Germany 527
13-10e India 527
13-10f Japan 528
13-10g Mexico 528
13-10h Russia 528
13-10i Saudi Arabia 528
13-10j South Korea 529
13-10k Vietnam 529
13-11 The Impact of Electronic Media on Negotiations 529
Chapter 14 Contract Management 535
14-1 Introduction 537
14-2 Elements of a Contract 539
14-3 How to Negotiate and Write a Contract 544
14-4 Types of Contracts 546
14-4a Fixed-Price Contracts 546
14-5 Fixed-Price Contract with Redetermination 548
14-6 Fixed-Price Contract with Incentives 548
14-6a Cost-Based Contracts 548
14-6b Considerations When Selecting Contract Types 555
14-7 Long-Term Contracts in Alliances
and Partnerships 557
14-7a Benefits of Long-Term Contracts 557
14-7b Risks of Long-Term Contracts 559
14-7c Contingency Elements of Long-Term Contracts 560
14-8 Nontraditional Contracting 561
14-8a IT Systems Contracts 561
14-8b Minority- and Women-Owned Business
Enterprise Contracts 563
14-8c Consulting Contracts 564
14-8d Construction Contracts 566
14-8e Other Types of Contracts 568
14-9 Settling Contractual Disputes 569
14-9a Legal Alternatives 570
14-9b Arbitration 571
14-9c Other Forms of Conflict Resolution 572
Chapter 15 Purchasing Law and Ethics 581
15-1 Introduction 585
15-2 Legal Authority and Personal Liability
of the Purchasing Manager 586
15-2a Laws of Agency 586
15-2b Legal Authority 586
15-2c Personal Liability 586
15-3 Contract Law 588
15-3a Essential Elements of a Contract 588

Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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Crossostoma, 408
Crucibulum, 248, 412
Cryptochiton, 245, 371, 402, 404
Cryptochorda, 425
Cryptoconchus, 404
Cryptophthalmus, 430
Cryptostracon, 353, 441
Ctenidia, 151—see Branchiae
Ctenopoma, 346–351, 414
Cucullaea, 274, 448
Cultellus, 457
Cuma, 423
Cumingia, 453
Cuspidaria, 459;
branchiae, 168
Cuvierina, 436, 436
Cyane, 410
Cyathopoma, 247, 268, 314, 338, 414
Cyclas, 453;
veliger, 132;
ova, 146;
otocyst, 197;
C. cornea, thread-spinning, 29;
distribution, 282
Cyclina, 454
Cyclobranchiata, 156
Cyclocantha, 409
Cyclomorpha, 414
Cyclonassa, 423
Cyclonema, 409
Cyclophoridae, origin, 21
Cyclophorus, 302, 306–319, 329–334, 344, 352–358, 414;
jaws, 212;
radula, 21
Cyclostoma, 328, 331–338, 414, 414;
stomach, 239;
vision, 184;
 osphradium, 195;
nervous system, 205;
C. elegans, 287, 288
Cyclostomatidae, origin, 21;
radula, 224;
gait, 199
Cyclostrema, 408
Cyclosurus, 247, 337, 414
Cyclotopsis, 338, 414
Cyclotus, 296, 319, 320, 414
Cylichna, 428, 430;
radula, 215
Cylindrella, 247, 260, 278, 343–355, 348, 442;
monstrosity, 251, 252
Cylindrellidae, radula, 233, 234
Cylindrites, 430
Cylindrobulla, 430
Cylindromitra, 425;
radula, 222
Cymbium, 255, 367, 425;
radula, 221
Cymbulia, 437
Cymbuliopsis, 437
Cynodonta, 424
Cyphoma, 419
Cypraea, 178, 419;
prices given for rare, 122;
mantle-lobes, 177, 178;
radula, 224;
shell, 255, 260, 261;
C. moneta, 96
Cypraecassis, 420
Cypraedia, 419
Cypraeovula, 419
Cyprimeria, 454
Cyprina, 451
Cyrena, 15, 453;
 distribution, 285, 294
Cyrenella, 453
Cyrtia, 505;
stratigraphical distribution, 507, 508
Cyrtoceras, 394
Cyrtodaria, 457
Cyrtodonta, 452
Cyrtolites, 407
Cyrtonotus, 448
Cyrtotoma, 414
Cysticopsis, 346–351, 441
Cystiscus, 425
Cystopelta, 325, 326, 440
Cytherea, 454, 454

Dacrydium, 449
Daedalochila, 441
Dall, W. H., quoted, 35;
on branchiae, 164
Damayantia, 440
Daphnella, 426
Darbyshire, R. D., on tenacity of life, 39
Dardania, 415
Dart-sac, 142
Daudebardia, 289, 292 f., 440
Davidsonia, 505, 508
Dawsonella, 410
Dayia, 505, 508
Decapoda, 385 f.
Decollation, 260
Deep-sea Mollusca, 374
De Folin, experiment on Cyclostoma, 157
Deianira, 410
Delage, experiments on otocysts, 197
Delphinula, 409
Deltidium, 499
Dendronotus, 433;
 protective coloration, 72;
habits, 51
Dentalium, 6, 444, 445;
used as money, 97;
veliger, 131;
radula, 228
Dentellaria, 350–355, 441;
aperture, 63
Desert species, 25, 85
Deshayesia, 411
Desmoulea, 423
Development of fertilised ovum, 130 f.
Dexiobranchaea, 437
Diadema, 414
Diala, 415
Dialeuca, 441
Diaphora, 314
Diaphorostoma, 412
Diastema, 418
Diastoma, 417
Diaulula, 434
Dibaphus, 425
Dibranchiata, 380;
eye, 183;
nervous system, 207
Diceras, 269, 455
Didaena, 12, 297, 455
Differences of sex, 133
Dignomia, 511
Digonopora, 134, 144
Diloma, 408
Dimorphoptychia, 410
Dimya, 450
Dinobolus, 504, 508
Dinoplax, 403
Ditocardia, 9, 170, 405 f.
Diplodonta, 452
Diplommatina, 302–327, 413
Diplomphalus, 322, 323, 440
Diplopoma, 346, 351, 414
Dipsaccus, 424
Dipsas, 307
Discina, 464, 468, 471, 475, 487;
distribution, 485;
fossil, 493, 504;
stratigraphical distribution, 506, 508
Discinidae, 487, 496, 504, 508, 511
Discinisca, 487, 510;
distribution, 485, 486
Discites, 395
Discodoris, 434
Discosorus, 394
Distortio, 255—see Persona
Ditropis, 312, 314, 414
Docoglossa, 227, 405
Dolabella, 428, 431
Dolabrifer, 431
Dolium, 419;
acid secretion, 237
Donax, 269, 446, 453
Dondersia, 404
Dorcasia, 333, 441
Doridium, 430
Doridunculus, 434;
radula, 229
Doriopsis, 434
Doris, breathing organs, 159;
radula, 230
Dorsanum, 423
Dosidicus, 390
Dosinia, 454
Doto, 433;
protective coloration, 71
Dreissensia, 14, 123, 452;
 hibernation, 26;
singular habitat, 48;
veliger, 132, 146;
eyes, 192
Dreissensiomya, 452
Drepania, 434
Drillia, 426
Drymaeus, 356, 442
Dryptus, 356, 441
Durgella, 301, 304, 440
Dwarf varieties, 88
Dybowskia, 290

Eastonia, 454
Eburna, 267, 424;
radula, 220
Ecardines, 466;
muscles, 476;
fossil, 493;
families, 487, 503, 508
Eccyliomphalus, 413
Echinospira, 133
Edentulina, 338
Egg-laying of Arion, 42 f.;
of Mollusca generally, 123
Eglisia, 411
Eider-duck, shells used by, 102
Elaea, 322, 440
Elasmoneura, 411
Eledone, 385, 385;
radula, 236
Elizia, 456
Elysia, 432;
protective coloration, 73;
breathing, 152;
radula, 217, 230, 432
Emarginula, 265, 406
Embletonia, 429
Emmericia, 415
Ena, 296, 442
Enaeta, 425
Endoceras, 394
Endodonta, 325, 334, 441
Engina, 424
Enida, 408
Ennea, 298, 302, 306, 309, 314, 316, 328–337, 440, 440;
habits, 54;
E. bicolor, 279
Enoplochiton, 403, 403
Enoploteuthis, 391
Ensis, 457
Entocolax, 77, 79, 152
Entoconcha, 77, 79, 152, 216
Entovalva, 77, 82
Ephippodonta, 453;
commensal, 81
Epidromus, 420
Epiphragm, 26, 27 f.
Epipodia, 427
Erato, 419
Eremophila, 294
Ergaea, 248, 412
Erinna, 327, 439
Erosion, 276
Ervilia, 454
Erycina, 453
Escargotières, 119
Estria, 329, 440
Estuarine species, 14
Ethalia, 409
Eucalodium, 260, 353, 442
Euchelus, 408
Euchrysallis, 420
Eudioptus, 442
Eudoxochiton, 403
Euhadra, 316, 318, 441
Eulamellibranchiata, 451;
gill, 166, 167
Eulima, 422;
parasitic, 77, 79
Eulimella, 250, 422
Eulota, 296, 441
Euomphalus, 247, 413
Euplecta, 440
Eupleura, 423
Euplocamus, 434
Eurybia, 438
Eurycampta, 346–351
Eurycratera, 349, 351, 441
Eurystoma, 304
Eurytus, 442
Euthria, 424
Euthyneura, 203
Eutrochatella, 347–351, 348, 410
Exploring expeditions, 362
Eye in Mollusca, 181 f.

Facelina, 432
Fasciolaria, 424;
radula, 221
Fastigiella, 416
Favorinus, 432
Fenella, 415
Fertilised ovum, development, 130 f.
Ferussacia, 291, 293, 297 f., 442
Fiji islanders, use of shells, 98
Filibranchiata, 448;
gill, 166
Fiona, 432;
radula, 217
Firoloida, 421
Fischer and Bouvier, on breathing of Ampullaria, 158
Fischeria, 15, 328, 453
Fish devour Mollusca, 59
Fissurella, 265, 406;
breathing organs, 153;
apical hole, 156;
nervous system, 204;
radula, 227;
growth, 261
Fissurellidaea, 406
Fissuridea, 406
Fissurisepta, 406
Fistulana, 262, 457
Flabellina, 432
Fluminicola, 415
Folinia, 415
Food of Mollusca, 30 f.;
Mollusca as food, 102 f.
Foot, 198;
in classification, 5
Forel, on deep-water Limnaea, 162
Formation of shell, 255
Fortisia, 429
Fossarina, 413
Fossarulus, 302, 415
Fossarus, 413
Fourth orifice in mantle, 174
Fresh-water species living in sea, 12;
frozen hard, 24
Frogs and toads devour Mollusca, 58
Fruticicola, 285, 290, 316, 318, 441
Fruticocampylaea, 296
Fryeria, 434
Fulgur, 249, 424
Fusispira, 420
Fusus, 262, 424
Gadinia, 152, 431;
breathing, 18, 151;
classification, 19;
radula, 217, 230
Gain, W. A., quoted, 32, 33, 39;
on taste of Mollusca, 179
Galatea, 15, 328, 336, 453
Galeomma, 175, 453
Galerus, 248, 412;
egg-capsules, 125
Garstang, W., on protective and warning coloration, 73
Gaskoin, on tenacity of life, 38;
on egg-laying, 42
Gassies, on hybrid union in snails, 130
Gasteropoda, on classification, 8, 11, 400 f.
Gastrana, 453
Gastrochaena, 457;
habits, 64
Gastrodonta, 440
Gastropteron, 245, 430
Gaza, 376, 408
Gena, 246, 408
Genea, 424
Genotia, 426
Geomalacus, 160, 288, 291, 441;
protective coloration, 70
Geomelania, 16, 348, 351, 414
Georgia, 331, 414
Georissa, 318, 410
Geostilbia, 338, 442
Gerontia, 441
Gerstfeldtia, 290
Gibbula, 408
Gibbus, 328–338, 440, 440
Gillia, 415
Gills—see Branchiae
Girasia, 301, 304, 440
Glandina, 54, 178, 278, 292 f., 339–355, 440;
radula, 231, 232;
habits, 53
Glands, germ, 134, 140;
nidamental, 136
Glassia, 501, 505
Glaucomya, 320, 454
Glaucus, 429, 432
Gleba, 437
Glessula, 301, 309, 310, 333, 442
Glochidium, 147
Glomus, 448
Glossoceras, 394
Glossophora, 7
Glottidia, distribution, 485, 487
Glycimeris, 457
Glyphis, 406
Glyptostoma, 341, 441
Gomphoceras, 394, 395
Gonatus, 391
Goniatites, 397, 398
Goniobasis, 341, 417
Goniodoris, 434;
protective coloration, 73;
radula, 229
Goniomya, 458
Gonostoma, 291, 316, 441
Goniostomus, 442
Grammysia, 459
Grateloupia, 454
Great Eastern and mussels, 116
Greenhouses, slugs in, 35
Green oysters, 108
Gresslya, 458
Growth of shell, 40, 257
Guesteria, 440
Guildfordia, 409
Guivillea, 186, 376, 425
Gulls and Mollusca, 56
Gundlachia, 19, 325, 345, 352, 359, 439
Gymnoglossa, 216, 225, 422
Gymnosomata, 437
Gyroceras, 247, 395
Gyrotoma, 417

Hadra, 306, 315, 319–325, 322, 441

Hadriania, 423
Haemoglobin, 171
Hainesia, 336, 414
Halia, 366, 426
Haliotinella, 431
Haliotis, 266, 407;
and coyote, 57;
holes of, 156;
osphradium, 195;
epipodium, 199;
nervous system, 204;
radula, 215, 226
Halopsyche, 159, 438, 438
Haminea, 428, 430;
protective coloration, 73
Hamites, 399
Hamulina, 399
Hanleyia, 403
Hapalus, 331, 442
Harpa, radula, 425, 216, 221;
self-mutilation, 45
Harpagodes, 418
Harpoceras, 399
Harvella, 454
Hatching of eggs, 43
Hazay, on duration of life, 39;
on variation in Limnaea, 93
Hearing powers of Mollusca, 196
Heart, in classification, 9;
action during hibernation, 26;
and branchiae, 169
Hectocotylus arm, 137 f.
Helcion, 405;
protective coloration, 69
Helcioniscus, 405
Hele, F. M., on Hyalinia, 33;
on Stenogyra, 34
Helicarion, 309, 316, 325, 332, 440;
radula, 232;
habits, 45, 67
Helicidae, radula, 232, 234
Helicina, 305, 306, 316–327, 338–358, 410;
origin, 21;
exterminated by cold, 24
Helicophanta, 335, 336, 441, 441
Heligmus, 449
Helix, 441;
toothed aperture, 63;
protective coloration, 70;
variation, 87;
carbonic acid, 163;
eye, 181, 183;
food, 179;
smell, 194;
jaw, 211;
distribution, 285;
tenacity of life, 37;
breeding, 129
Helix alternata, 340;
angulata, 350;
aperta, 38, 39, 51, 293;
arbustorum, bathing, 23;
caperata, variation, 89;
cereolus, 340;
cicatricosa, 316;
crenilabris, 45;
delphinuloides, 297;
desertorum, 37, 38, 70, 294;
fidelis, 341;
haemastoma, habits, 70;
harpa, 287;
hortensis, 10, 279;
pulsations, 26;
epiphragm, 28;
rock-boring, 49;
dart, 143;
imperator, 347;
habits, 45;
laciniosa, 297;
lactea, 25, 38, 42, 279;
lima, 350;
muscarum, 347;
nemoralis, 38, 180;
niciensis, 292;
nux denticulata, 350;
palliata, 340;
pisana, 25;
habits, 33;
pomatia, 25, 34, 40;
eye, 181;
pomum, 322;
pulchella, 279;
richmondiana, 322;
rosacea, 259;
rostrata, 347;
rota, 314;
rufescens, pulsations, 26;
similaris, 279;
souverbiana, 336, 441;
strigata, 293;
tristis, habits, 49;
turricula, 297;
 Veatchii, 38;
Waltoni, 304;
Wollastoni, 297;
zonata, 293
Helix aspersa, homing, 35;
smell, 36;
duration of life, 39;
growth, 40;
strength, 45;
boring rock, 50;
variation, 87, 89;
eaten, 119;
hybrid union, 130;
generative organs, 140 f., 141;
dart-sac, 143;
pulmonary chamber, 160;
radula, 217;
alimentary canal, 237;
monstrosities, 251, 252;
growth, 258;
distribution, 279, 289
Hemiarthrum, 403
Hemicardium, 455
Hemidonax, 453
Hemifusus, 424
Hemipecten, 450
Hemiplecta, 310, 316, 319, 321, 440
Hemisepius, 389
Hemisinus, 357, 417
Hemitoma, 265
Hemitrichia, 314
Hemitrochus, 346–351, 441
Hemphillia, 245, 341, 441
Hercoceras, 395
Herdman, Prof. W. A., on cerata of Nudibranchs, 71 f.;
experiments on taste of Nudibranchs, 72;
on Littorina rudis, 151 n.
Hermaea, 432;
protective coloration, 73
Hermaphrodite Mollusca, 134, 140, 145
Hermit-crabs, shells used by, 102
Hero, 432
Heterocardia, 454
Heterodiceras, 455
Heteropoda, 9, 420 f.;
radula, 228;
foot, 200
Heudeia, 316, 410
Hexabranchus, 434
Hibernation, 25, 163
High altitudes, Mollusca living at, 24
Himella, 15
Hindsia, 424
Hindsiella, 453
Hinge area, 493, 498
Hinge, in bivalves, 272
Hinnites, 257, 450
Hipponyx, 248, 412
Hippopus, 455
Hippurites, 455, 456
Histiopsis, 391
Histioteuthis, 391
Holcostoma, 417
Holohepatica, 433
Holopella, 411
Holospira, 339, 353, 442
Holostomata, 156
Homalogyra, 413;
radula, 223
Homalonyx, 245, 343-358, 443
Homing powers of Mollusca, 34
Homorus, 330–337, 443
Hoplites, 399
Hoplopteron, 422
Horea, 332
Horiostoma, 409
Hot springs, Mollusca living in, 25
Huronia, 394
Hyalaea, 10, 436
Hyalimax, 245, 305, 306, 338, 443
Hyaline stylet, 240
Hyalinia, 440;
pulsations, 26;
food, 33;
smell, 194;
dart, 143;
radula, 232, 234;
distribution, 287 f., 318, 340–357;
H. alliaria, 279;
smell, 194;
cellaria, 279;
Draparnaldi, 33
Hyalocylix, 437
Hyalosagda, 352
Hybocystis, 305, 309, 414
Hybridism, 129
Hydatina, 430;
radula, 231
Hydrobia, 325, 332, 415;
H. ulvae, egg-laying, 128
Hydrocena, 298, 410;
radula, 226
Hymenoptera build in dead shells, 102
Hypobranchaea, 434;
radula, 230
Hypotrema, 448
Hypselostoma, 248, 302, 305, 314, 442
Hyria, 344, 452
Hystricella, 297

Ianthina, 360, 126, 411;

 egg-capsules, 125;
eyes, 186;
radula, 224
Iapetella, 385
Iberus, 285–293, 297, 441
Ichthyosarcolites, 456
Idalia, 179, 429, 434;
radula, 229, 230
Idas, 449
Idiosepion, 389
Illex, 390
Imbricaria, 425;
radula, 221
Imperator, 409
Indians of America, use of shells, 100
Infundibulum, 408
Inioteuthis, 389
Ink-sac, 241
Inoceramus, 449
Insects eaten by Mollusca, 32
Insularia, 319, 320
Intestine, 241
Io, 16, 340, 417
Iopas, 423
Iphigenia, 15, 453
Iravadia, 305, 415
Iridina, 294
Irus, 297
Isanda, 409
Ischnochiton, 403
Isidora, 298, 320–327, 333, 336, 359, 439
Ismenia, 404
Isocardia, 269, 451, 451
Isodonta, 453
Isomeria, 343, 356, 441
Issa, 434
Jamaicia, 414
Janella, 161, 443;
pulmonary orifice, 161
Janellidae, radula, 234;
distribution, 321–326
Janus, 432
Japonia, 318
Jaws, 210
Jeanerettia, 346–351, 441
Jeffreys, Dr., on Limnaea, 34;
on Neptunea, 193
Jeffreysia, 415;
radula, 223
Jorunna, protective coloration, 73
Jouannettia, 457
Jullienia, 307, 415
Jumala, 424

Kaliella, 301, 304, 310, 314–317, 335, 440

Kalinga, 434
Kashmir, land Mollusca, 280
Katherina, 403
Kelletia, 424
Kellia, 453
Kellyella, 452
Kidneys, 242
King, R. L., on smell in bivalves, 195
Kingena, 506, 508
Kitchen-middens, 104
Koninckella, 505;
stratigraphical distribution, 507, 508
Koninckina, 505;
stratigraphical distribution, 507, 508
Koninckinidae, 501, 505, 508
Kutorgina, 504;
stratigraphical distribution, 506, 508;
embryonic shell, 509
Labial palps, 210
Labyrinthus, 342, 353–357, 441;
aperture, 63
Lacaze-Duthiers on Testacella, 52 f.;
on smell in Helix, 194
Lacuna, 413
Lacunopsis, 332
Lagena, 424
Lagochilus, 309, 316–319, 414
Lamellaria, 245, 411;
habits and protective coloration, 74;
parasitic, 78;
radula, 223
Lamellidoris, 434;
radula, 229, 230, 231
Lampania, 417
Land Mollusca, origin, 11 f.
Lanistes, 249, 294, 328, 331, 416
Lankester, Prof. E. Ray, on shell-gland, 132;
on haemoglobin, 171
Lantzia, 278, 338, 439
Laoma, 441
Larina, 302, 417
Larvae of Pelecypoda, 7;
of insects resembling Mollusca, 67 f.
Lasaea, 453
Latia, 19, 326, 439
Latiaxis, 423
Latirus, 424
Latter, O. H., on Glochidium, 147
Layard, E. L., on self-burying Mollusca, 41;
on sudden appearance of Stenogyra, 47;
on Coeliaxis, 49;
on Rhytida and Aerope, 54
Leda, 447
Leia, 348–351, 442
Leila, 344, 452