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Nadha Klu, manager for Xcelent Xtrusion, continues to dither about pricing for a plastic part used in an assembly item for Zero Defects Company, a major customer. Nadha has met another eager salesman, Wiley K. Yotey, who has convinced him that the part that Wiley sells is exactly the same as the one currently used in the assembly process at Xcelent—but at a slightly lower cost if he buys it from his company, Bit Parts & Pieces. Wiley goes on to identify himself as the son of the president of his company, assuring him that “My dad would never cheat anyone.”
Nadha is impressed by the young man’s sincerity, and by the fact that Bit Parts is a family business. “That would give them more flexibility in pricing,” he reasons. Is Nadha on the right path this time?
a) Yes. He should jump at an opportunity to impress his own boss by saving a little money. After all, he could even mix these parts with the inventory he has, and no one would know the difference.
b) No. He should consider the ramifications of switching to another vendor and mixing parts from two vendors on the assembly line—something that can indeed create problems.
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