It was May 2007. Earlier in the week, Epsilon Refinery Group had received notification from one of its major suppliers that the price of a key raw material, hydrofluoric acid (HF), would increase at the end of the year-in just seven months. This action was in accordance with an environmental clause in the contract with Cornwell Performance Products (CPP), a division of the multinational chemical manufacturer, Cornwell, Inc. Also in accordance with the contract, action would be required within the next 60 days. Preliminary discussions within Epsilon focused on three primary alternatives. These limited options and the very high stakes involved made the pending discussions with CPP among the most important in recent Epsilon history.
Harimann International, a small producer of finished textiles, receives a large, unexpected order at the beginning of the off-season. Unfortunately, none of the available embroiderers (subcontractors) can commit to finishing the goods in time for internal processing (bleaching, cutting, sewing, washing, and packing) to be completed in time to guarantee the shipping date. This case offers a rich context for analyzing problem solving under uncertain conditions and exploring risk-reduction opportunities.