Question: 5. Do you continue long term contracting with this supplier? Do you penalize this supplier? You are Manager of Strategic Sourcing at Toyota Motor Corporation

5. Do you continue long term contracting with this supplier? Do you penalize this supplier?

You are Manager of Strategic Sourcing at Toyota Motor Corporation and have just been called in by the VP of Global Sourcing, to whom you report. There has been a problem with at least eight vehicles exhibiting sticking accelerator pedals and your boss is very upset. Strong evidence points to a problem with CTS, an electronics supplier, which has been recognized for high-quality standards by Toyota.

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