Given scenario: Person X is an operations manager of a company, which makes replacement car mufflers and tailpipes. The company suffered a downturn after a few years of steady growth. Five percent of the production capacity was shut down. At that time, two supervisors and 70 workers were laid off. One day, Person X got a call from the general manager of Company K mufflers saying that they need a supply of large volume of mufflers. He added that the sales manager, who works with Person X, stated that they would meet their needs in a given time. Person X realized that they need a 20 percent increase in the production capacity to meet their needs and they even need bigger building and trained workers. To determine: The response to the customer’s question from an ethical standpoint.

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Chapter 7, Problem 7.21EE

Summary Introduction

Given scenario:

Person X is an operations manager of a company, which makes replacement car mufflers and tailpipes. The company suffered a downturn after a few years of steady growth. Five percent of the production capacity was shut down. At that time, two supervisors and 70 workers were laid off. One day, Person X got a call from the general manager of Company K mufflers saying that they need a supply of large volume of mufflers.

He added that the sales manager, who works with Person X, stated that they would meet their needs in a given time. Person X realized that they need a 20 percent increase in the production capacity to meet their needs and they even need bigger building and trained workers.

To determine: The response to the customer’s question from an ethical standpoint.

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