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Operations Management: Processes and Supply Chains, 12th Edition by Larry P. Ritzman, Manoj K. Malhotra, Lee J. Krajewski

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Supply Chain Ethics

Supply chains, by virtue of their interconnectedness with other firms and their intense internal and external human interactions, often pose ethical issues for their managers. In this section, we will explore some of the ethical issues associated with buyer–supplier relationships, location of facilities, and inventory management.

Buyer–Supplier Relationships

When an ethical issue arises, customers often blame the firm that sold them the service or product when in fact a supplier farther upstream was at fault. Selecting suppliers that adhere to ethical codes of conduct is a critical aspect of designing a supply chain. This is a difficult task; however, socially responsible firms have some guidance for selecting ethical suppliers. ...

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