This case provides a synthesis of production planning methodologies and practical ethics. It chronicles the dilemma facing the owners of Beauti-Phil Apparel, a fictional clothier operating in northwest Pennsylvania. The firm has lost one of its major accounts and must produce an aggregate production plan and use it to decide whether or not to reduce the size of its loyal workforce due to the drop in demand. The owners have also received a proposal from a lower-cost but potentially environmentally-irresponsible raw material supplier, and they must choose whether or not to accept the offer. They are looking for advice on how to handle these two ethical dilemmas—reducing the size of a historically loyal workforce and procuring materials from a supplier with alleged environmental improprieties.

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Questions:

1. State and justify your recommendation concerning: a. changing the size of the workforce and b. accepting the proposal from the new raw material supplier. Explain why you reject the other viable alternatives. Consider what obligation a firm might have to a workforce that has provided loyal service for a long period of time and if there are any viable alternatives to layoffs. Also consider what it means for a firm to be a good corporate citizen.

2. What is your dominant ethical philosophy, listed at the end of the case, and how did it effect your answer to question 1?