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A Case of too much help - What alternatives are available to Nancy? Discuss the advantages and disadvantages of each alternative.
A CASE OF TOO MUCH HELP Nancy O’Leary, senior supply manager at the Northfield Unified School District supply department, sat reflecting on a purchase requisition (P.R.) she had just received. The P.R. called for 1,000 model 2001 classroom armchairs, manufactured by the Twinsburg Chair Company. The P.R. was requested by Betsy Burns, instructor, and authorized by Rudolf Rupp, principal. Sufficient funds and the budget class were cited. A copy of a sales agreement for the chairs was attached. The price was $120 per chair, F.O.B. Northfield. Nancy reviewed three other chair suppliers’ catalogues and learned that nearly identical chairs were available F.O.B. Northfield at prices ranging from $40 to $43. Nancy called Betsy Burns and asked whose idea it was to specify the Twinsburg chairs, mentioning that this chair was nearly three times as expensive as three comparable chairs. Betsy responded in her Georgia drawl, “Why, Nancy, darlin’, the superintendent’s cabinet decided that at last week’s meeting. They said that they wanted the best there was for our young people.” Nancy thanked Betsy for the information. Based on past experiences with the superintendent’s cabinet, she knew that it would be futile to get authorization to buy the less expensive chairs. In a resigned manner, she called the Twinsburg rep and requested him to visit her to discuss the terms of the purchase. Something did not seem right—but Nancy seemed powerless to do anything about it. 1. What courses of action are open to Nancy? 2. What are the advantages and disadvantages of each?
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