In this Lean operations world, in an effort to lower handling costs, speed delivery, and reduce inventory, retailers are forcing their suppliers to do more and more in the way of preparing their merchandise for their crossdocking warehouses, shipment to s pecific stores, and shelf presentation. Your company, a small manufacturer of aquarium decorations, is in a tough position. First, Alley Valley Inc. wanted you to develop bar small individual shipments bar codcode technology, then special packaging, then ed for each store. (This way when the merchandise hits the warehouse, it is crossdocked immediately to the truck destined for that store, and upon arrival the merchandise is ready for shelf placement.) And now Alley Valley Inc. wants you to develop radio frequency identification (RFID) immediately.

Alley Valley Inc. has made it clear that suppliers that cannot keep up with the technology will be dropped. Earlier, when you didn't have the expertise for bar codes, you had to borrow money and hire an outsid e firm to do the development, purchase the technology, and train your shipping clerk. Then, meeting the special packaging requirement drove you into a loss for several months, resulting in a loss for last year. Now it appears that the RFID request is impos sible. Your business, under the best of conditions, is marginally profitable, and the bank may not be willing to bail you out again. Over the years, Alley Valley Inc. has slowly become your major customer and without it, you are probably out of business.

Question 1: Do you think Alley Valley Inc. has any ethical issues? Yes or No. Support your answer with clear explaination.

Question 2 What recommendations would you give to the sales manager of improvements their productivity? Give four an Alley Valley Inc. about the (4) recommendations with clear explaination to support your answer.