The Information Due to the Customer

TitleThe Information Due to the Customer
Publication TypeCase Study
Year of Publication1992
AuthorsPritchard, MS
Corporate AuthorsNational Academy of Engineering, OEC
PublisherNational Academy of Engineering, Online Ethics Center
AbstractXYZ orders 5000 custom made parts from ABC for one of its products. When the order is originally made ABC indicates it will charge $75 per part. This cost is based in part on the cost of materials. After the agreement is completed, but before production of the part begins, ABC engineer Christine Carsten determines that a much less expensive metal alloy can be used while only slightly compromising the integrity of the part. Using the less expensive alloy would cut ABC's costs by $18 a part. Includes expert commentaries.
NotesCase study originally published in “Teaching Engineering Ethics: A Case Study Approach” by Michael Pritchard. Center for the Study of Ethics in Society, Western Michigan University, 1992.