GeoBab has been facing challenges constantly due to its diverse operations and absence of standardized ERP system. Recently, the integration of EL Manufacturing into GeoBab$$s supply chain has caused major operational and financial difficulties for the Sung, one of the bigger and older divisions. The acquisition of EL Manufacturing was meant to decrease the costs and improve the efficiency, but it has resulted in additional defects in components. Consequently, the product quality went down which negatively impacted the sales. Because of defected products, more materials and labour were required, leading to an increase in manufacturing overhead due to rework and spoilage. As a result, the manufacturing costs like variable costs and manufacturing overhead went up$.$ Ultimately, the operating income of Sung went negative due to lower sales and higher costs. Additionally, Sung$$s financial burden is worsened by EL$$s pricing strategy, which surpasses market rates. El wants a higher transfer price to achieve a $25\%$ ROI based on independent firms earning same percentage. But the general manager at Sung disagrees with raising prices as EL is already charging $5\%$ above the market price. The purpose of this report is to analysis the issues in detailed, and provides the possible recommendations to resolve the issues. Explain the main ssues, analysis of issues $,$ alternative options to resolve the issues, implementation