Responsibility of purchasing agent. (Adapted from a description by R. Villers) (15 minutes) Agtst Karlsson is the purchasing agent for the Akureyri Manufacturing Company. Bjarni Johannesson is head of the Production Planning and Control Department. Every 6 months, Johannesson gives Karlsson a general purchasing programme. Karlsson gets specifications from the Engineering Department. He then selects suppliers and negotiates prices. When he took this job, Karlsson was informed very clearly that he bore responsibility for meeting the general purchasing programme once he accepted it from Johannesson. During week 24, Karlsson was advised that Part No. 1234—a critical part—

would be needed for assembly on Tuesday morning of week 32. He found that the regular supplier could not deliver. He called everywhere and finally found a supplier in Selfoss, and accepted the commitment. He followed up by post. Yes, the supplier assured him, the part would be ready. The matter was so important that on Thursday of week 31, Karlsson checked by phone. Yes, the shipment had left in time. Karlsson was reassured and did not check further. But on Tuesday of week 32, the part had not arrived. Enquiry revealed that the shipment had been misdirected and was still in Reykjavik. kio7 REQUIRED What department should bear the costs of time lost in the plant? Why? As purchasing agent, do you think it fair that such costs be charged to your department?