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ME2054 Purchasing & Supply Chain Management 6.0 credits

The competitive strength of the technology intensive firm is, today, decided by the ability to deliver customized products and services worldwide in a fast and cost-effective way. The competition is, therefore, no longer between individual firms, but between value chains. This means that a company’s ability to compete is dependent on the weaknesses and strengths of their customers and suppliers. The demand for integration and cooperation between different actors will therefore be even more accentuated, and the aim of this course is to show how resources and activities can be coordinated all through the value chain for increased effectiveness.

This course focuses on the strategic role of purchasing and supply management

Choose semester and course offering

Choose semester and course offering to see information from the correct course syllabus and course offering.

Headings with content from the Course syllabus ME2054 (Spring 2020–) are denoted with an asterisk ( )

Content and learning outcomes

Course contents

The course covers the following fields:

  • The bases of supply chain management and its consequences for the purchasing function.
  • Make or buy decision.
  • Kraljic portfolio matrix.
  • E-purchasing.
  • Qualitative and quantitative methods for suppliers evaluation and selection.
  • Supply management by means of performance measurements.
  • Organizational structures for purchases and control of the supply chain.
  • Contract in supply chains.
  • The supplier's risk management.
  • Cost analysis and pricing.
  • Porters five forces.
  • Total Cost of Ownership.
  • Corporate Social Responsibility and sustainability in purchases, outsourcing, supplier selection and monitoring.

Intended learning outcomes

After passing the course, the students should be able to:

  1. describe and explain the role of the purchasing function within the management of transport and operations
  2. use mathematical models for optimising purchasing costs
  3. use mathematical models to suggest best portfolio of suppliers and strategies for relationship management
  4. apply costing models to analyse purchasing costs and evaluate strategies for the supply chain
  5. analyse, synthesise and explain how different types of organizational structures can influence purchasing and other managerial functions in the supply chain.
  6. in detail describe topic of one's own choice from the course e g measurement of the supplier's performance, risk management, sustainable purchase and pricing etc
  7. through analysis of the subjects that are treated in the course illustrate and formulate a relevant research question
  8. through a systematic literature search in the area of purchasing identify relevant theories from previous studies
  9. create a framework that synthesises the identified theories from the examined literature

Course disposition

See the course syllabus

Literature and preparations

Specific prerequisites

Satisfies the requirements for a Degree of Bachelor
ME1003 Industrial Management or ME1314 Introduction to Industrial Engineering and Management
Completed Documented knowledge in English B or the equivalent

Recommended prerequisites

No information inserted




Course litterature will be announced at the start of the course.

Examination and completion

If the course is discontinued, students may request to be examined during the following two academic years.

Grading scale

A, B, C, D, E, FX, F


  • PRO1 - Project, 2.5 credits, grading scale: A, B, C, D, E, FX, F
  • SEM1 - Seminar, 3.5 credits, grading scale: A, B, C, D, E, FX, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Opportunity to complete the requirements via supplementary examination

See the course syllabus

Opportunity to raise an approved grade via renewed examination

Decided by the examiner.


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Ethical approach

  • All members of a group are responsible for the group's work.
  • In any assessment, every student shall honestly disclose any help received and sources used.
  • In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web ME2054

Offered by

ITM/Industrial Economics and Management

Main field of study

Industrial Management

Education cycle

Second cycle

Add-on studies

See the course and program directory.


Luca Urciuoli (