Discuss the pros and cons of two possible solutions to the manufacturing issue below. As the Operations Manager in "Omitted," a big name in manufacturing outfits for children in the age group 5–12. Omitted has three main suppliers, R$#@l Textiles, N#@%e Fabrics, and F*(^&t Yarns, who supply high-quality textiles at reasonable prices. Until recently your company was one of the major customers for each of these suppliers. In recent months however the customer base of F(*&^t Yarns has increased drastically and as a result their quality has deteriorated. After a series of negotiations, F*&^%t Yarns has assured your company of higher quality but is also demanding an increase in price. The management is not happy with the demand for an increase in price because the contract with F*&^%t Yarns was only renewed recently. There is also a chance that if the contract is renewed, the other suppliers may also want a contract revision. If F*&^%t Yarns is eliminated as a supplier, the other suppliers may not be able to handle the drastic increase in demand adequately. Moreover, new suppliers are likely to demand higher prices.
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Latest answer posted April 21, 2012 at 10:15:16 PM
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