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Krug Furniture Inc. - The Cut-Off Saw
A small manufacturing company has purchased an innovative and complex new machine. The equipment is for a vital part of the manufacturing process. Despite the concerted efforts of the equipment maker and the company's production and manufacturing staffs, the new machine fails to achieve the promised output. The purchase of this equipment was supposed to be the first step in a move toward advanced manufacturing techniques. The vice-president, production, must decide whether to continue to attempt to get the equipment running well or to exercise his option of returning the system and getting back the purchase price plus a penalty fee.