In December 2020, Daytoy Group, a leading global furniture and home furnishings retailer, asked the small Chinese candle supplier Dalian Talent Co. Ltd. to become its sole supplier of aromatic and unscented candles. Daytoy Group was offering the supplier a large amount of new production volume after terminating its relationship with its only other candle supplier in the Asia-Pacific region due to a corporate social responsibility issue. The supplier had to consider the cost of the additional supply chain management, manufacturing technique, and production capacity that would be needed to comply with the new request. The company already had enough orders from other reliable clients to fill its schedule until April 2022. Expanding production capacity and adding work teams to meet the request would take one to two years. How should the supplier respond to the request? What impact would the new arrangement have on its operations? How would it affect its long-time collaboration and future partnership with Daytoy Group?

In December 2020, Daytoy Group, a leading global furniture and home furnishings retailer, asked the small Chinese candle supplier Dalian Talent Co. Ltd. to become its sole supplier of aromatic and unscented candles. Daytoy Group was offering the supplier a large amount of new production volume after terminating its relationship with its only other candle supplier in the Asia-Pacific region due to a corporate social responsibility issue. The supplier had to consider the cost of the additional supply chain management, manufacturing technique, and production capacity that would be needed to comply with the new request. The company already had enough orders from other reliable clients to fill its schedule until April 2022. Expanding production capacity and adding work teams to meet the request would take one to two years. How should the supplier respond to the request? What impact would the new arrangement have on its operations? How would it affect its long-time collaboration and future partnership with Daytoy Group?