Your company currently outsources the manufacturing of a


Assume you are a manager of a large heavy equipment manufacturing company. Your company currently outsources the manufacturing of a specialized piece of equipment to a firm in another country overseas. The outsourcing of this piece of equipment has saved your organization a considerable amount of money and has increased profits by 15%. A recent newspaper article has revealed that this overseas firm is paying their employees only a few dollars a day, and their employees often work long hours. While you are not the only company that uses this firm, your company was specifically named in the newspaper article. You have been asked by your CEO to make a decision on whether or not to continue to do business with this firm.

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Operation Management: Your company currently outsources the manufacturing of a
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