NEP: The Art and Science of Purchasing Coali

National Electric Power is a multinational energy order with a variety of energy assets. NEP is headquartered in Columbus, Ohio, and has a service subject field of approximately 197,500 square miles in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. In 2001, NEP had revenues of $61.3 billion and carried $47 billion in assets, making them the largest electricity generator in the unite States. Deon Houston, vice president for the National Electric Power (NEP) Commodity concern Division, was in the process of producing her annual sourcing report for the companys three-year plan. part NEP seems to have had success using the competitive bidding process, reverse auctions may be the wave of the future. Mrs. Houston was wondering if the reverse auction sourcing approach would throw for get the companys coal requirements.Questions1. As purchasing theater director for NEP, what is your evaluation of the various alternati ves open to Deon for the purchase of coal?2. As the purchasing manager for NEP, what recommendations would you make to Deon regarding the purchase of coal?3. What unique internal be might be incurred when outsourcing? What can be done to minimize them? What should not be done to minimize them?4. Comment on this quote (in aim With examples) the power of a supply chain member is the ability to learn the decision variables in the supply strategy of another member in a given chain at a different train of the supply chain. It should be different from the influenced members original level of control over their own supply strategy.5. Discuss the pros and cons of the major supplier evaluation processes. What would lead you to choose one of them (what situational characteristics)?