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Four Square Lumber Mill

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Four Square Lumber Mill
FOUR SQUARE LUMBER MILL

Question 1: Identify and discuss the major issue(s) in the case

In the requisition of the carborundum blades, it specifically mentioned that no substitute for Swiss blade is permitted but Iqbal still trying to find alternative solution available in the local market. He found the alternative sources and persuades the sawing operation to perform the trial. The trial is failed and now Iqbal convinced that he being sabotage, he accused the sawing operation team was purposely unfairly treated the local blades during the operation to ensure the local blades would fail. This is because, during the discussion with Sam, foreman of sawing operation, he is reluctant to proceed with the trial and very confident that the local brand will not work. His expression and behaviour showed that he feel happy to prove that the trail is failed.

Question 2: Key fact of the case

When Iqbal viewed the requisition of carborundum saw blades at Tampin plants, he found that the specialised blade made from Switzerland and purchase through local supply in Penang at cost of $220, DDP Penang. The requisition specified that no substitutes were permitted and Iqbal went to look for other alternative sourcing for better saving.

Iqbal found two suppliers that producing local blade and was informed that the local brand, Dipson 412 is same quality as the Swiss brand. They quoted price of $112.50 and $115; both are DDP Tampin.

Sam, foreman of sawing operation at Four Square is reluctant to try the local brands as he confident it would not stand up as per the Swiss brand. Finally he agreed but told Iqbal that he knows that the local brand will not work. Iqbal proceed with the trial purchase, and put provision that blades could returned for credit if it not prove equal to Swiss brand.

The trial is fail as Sam showed Iqbal the sample of two local blades which burned during due to excess heat during the production. Sam expression was happy when he told

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