ANSWERS

1. As per supply chain management code, the members should

maintain relationship with suppliers and third parties to
promote fair competition in the market. The members should
not use their position to collect personal advantages and
does not do any unethical activity against the company. In
this case study, Richard breaches the standard of conduct
because he issued new invoice to the suppler with high rates.

2. On his next meeting with CEO, Richard want to say everything

what he did to solve this problem.

He want to say deal between him and supplier (John

Gerrard) and product manager (Meadows). Meadows went
to business trip at that time so I took approval of material for
artwork with one of his valued supplier. Meadows offering
discount for the material and substantial amount for
overtime. The original cost was $50,000 and additional labor
charges with overtime $30,000 to change the art work earlier.

Original Cost =$50,000 (cancelled)

New Invoice Cost = $60,000 with overtime rates.