Cole Miller interviewed the Director of Operations for an office furniture manufacturing company in the Grand Rapids area. The manufacturing company produces and sells office chairs to two companies. Both customers’ want to lower the sell price of these chairs. The original cost of the chairs is $21 and they sell for $27. A competitor in China can produce the mechanisms for the chair for cheaper but the mechanism does not meet BIFMA standards. With the China mechanism the chair would cost $17 and would sell for $24. The question is does the Director of Operations outsource this product to save $4 for the customers and how does this impact his company?
Director of Operations does not feel ethical outsourcing this product that does not