NEP: The Art and Science of Purchasing Coali

National Electric advocate is a international energy federation with a variety of energy assets. NEP is headquartered in Columbus, Ohio, and has a service area 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 germ in the United States. Deon Houston, vice president for the National Electric Power (NEP) Commodity Trading Division, was in the process of producing her annual sourcing report for the companys three-year plan. While NEP seems to have had success using the competitive summons process, reverse auctioneers may be the wave of the future. Mrs. Houston was wondering if the reverse auction sourcing approach would work for purchasing the companys combust requirements.Questions1. As purchasing manager for NEP, what is your evaluation of the various alternatives 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 rum internal costs might be incurred when outsourcing? What can be do to minimize them? What should NOT be done to minimize them?4. Comment on this quote (in detail With examples) the power of a supply chain atom is the ability to control the decision variables in the supply strategy of other member in a given chain at a different level of the supply chain. It should be different from the influenced members original level of control over their own supply strategy.5. establish the pros and cons of the major supplier evaluation processes. What would lead you to choose one of them (what situational characteristics)?