Please answer case study question #4. Review cost versus quality standards from the chapter before answering this question. please explain in great detail. thank you

18 SUPPLY CHAIN STRATEGY and the company was doing well financially. He was anxious to This concluded the meeting. Luckily Mr. Frizzle had an easy hear what Davenport had to say. exit, as he had only gotten one foot in the door before his task Derick entered Davenport's vast office, a room was demanded. highlighted by ceiling-to-floor windows. He could see Derick M. Frizzle was rather pleased with his new Mr. Davenport sitting at the end of the long, dark wooden detail, as he cared greatly for nature and had always refrained table, with his two aides accompanying him on each side. The from purchasing his own company's products due to their lack man on the right was Bo Jenson, and the woman on the left of consideration for both the individual and the environment. was Gertrude Masterson; neither were taken lightly within the However, Derick was now confronted with a problem. His cur- company. Derick could always tell when it was going to be a rent suppliers offered the lowest cost in the business and would bad day. likely not be able to provide the needed quality assurances. His "Darn hippies," Davenport rumbled. "Bo and Gertrude expertise had been in procuring the least-expensive ingredients have some troubling news. This swing toward animal rights and available, and he did not know where to begin changing his quality goods' is about to cost me a lot of money." Daven- sourcing practices. port continued, making mocking "bunny ears with his bulbous index and middle fingers. "Apparently market trends are chang- Case Questions ing again and not for the better." Davenport continued to explain 1. Identify the steps that Derick should take to solve his that there was going to be a change in the competitive strat problem. egy of the firm. The competition in the hair care market had 2. Should Derick ask for the required changes from the cur- become fierce, and there was greater focus on quality. Specif- rent suppliers? If they do not comply, should be solicit new ically, the recent trend in animal rights and natural, organic suppliers? How might he do this? products meant ensuring that the shampoo content did not go through animal testing and that it was ensured to be hypoaller- 3. Should Derick go through a competitive bid in the future? genic. The current products were produced to compete for price If so, should he do it for all purchased products or just some products? and did not agree with the new demands. Davenport wanted to see products on the retail shelf with this quality standard as soon 4. What are the differences when looking for suppliers to meet as possible. "Do it." Davenport continued and sat back down. cost standards versus quality standards