Ágúst Karlsson is the purchasing agent for the Akureyri Manufacturing Company. Bjarni Jóhannesson is head of the Production Planning and Control Department. Every six months, Bjarni gives Ágúst a general purchasing programme. Ágúst gets specifications from the Engineering Department. He then selects suppliers and negotiates prices. When he took this job, Ágúst was informed very clearly that he bore responsibility for meeting the general purchasing programme once he accepted it from Bjarni. During week 24, Ágúst 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, Bjarni checked by phone. Yes, the shipment had left in time. Bjarni 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.
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?