A team of internal auditors developed the following finding, except for their recommendation:

Condition Current production rate per machine is 120 units per day, leading to more than two-week delays in job deliveries.

Criteria The standard production rate is an average of 150 units per day per machine.

Cause The variable quality of the current supply of raw materials results in inconsistent product quality, numerous rejects, and machine breakdowns.

Effect In addition to production delays, 10 percent of all orders have been canceled over the last 3 months. New orders have decreased from an average of 100 per week to 90 per week. The combined effect of canceled orders and the loss of new sales decreases revenues by approximately $200,000 monthly. Production costs also have increased by $15,000 per month in materials wastage and $5,000 average monthly repair cost on machinery.

REQUIRED: What recommendation would you make in this case?