(Excessive inventory) The director of supply management at Turner Machine Works has contracted for $1 million of spare parts that are currently unneeded. His rationale for the contract was that the parts were available for purchase at a significantly reduced price. The company just hired a new president who, on learning about the contracts, stated that the parts contracts should be canceled because the parts would not be needed for at least a year. The supply director informed the president that the penalties for canceling the contracts would cost more than letting the orders go through. How would you respond to this situation from the standpoint of the president? From the standpoint of the supply director?