Page 299 - Using MIS

a bigger inventory. That will kill your sales to the company Meanwhile, unknown to you, your company’s ERP
next quarter, but you’ll solve that problem then. system is scheduling production. The program that cre-
Even with these additional orders, you’re still under ates the production schedule reads the sales from your
quota. In desperation, you decide to sell product to a ficti- activities (and those of the other salespeople) and finds
tious company that you say is owned by your brother-in- a sharp increase in product demand. Accordingly, it gen-
law. You set up a new account, and when accounting calls erates a schedule that calls for substantial production
your brother-in-law for a credit check, he cooperates with increases and schedules workers for the production runs.
your scheme. You then sell $40,000 of product to the ficti- The production system, in turn, schedules the material
tious company and ship the product to your brother-in- requirements with the inventory application, which in-
law’s garage. Accounting books the revenue in the quarter, creases raw materials purchases to meet the increased
and you have finally made quota. A week into the next quar- production schedule.
ter, your brother-in-law returns the merchandise.

DisCussion Questions

1. Consider the email you write that agrees to take the c. What effect does that discount have on your com-
product back. pany’s balance sheet?
a. Is your action ethical according to the categorical im- 3. Regarding your shipping to the fictitious company:
perative (pages 20–21) perspective? a. Is your action ethical according to the categorical im-
b. Is your action ethical according to the utilitarian per- perative perspective?
spective (pages 56–57)? b. Is your action ethical according to the utilitarian
c. If that email comes to light later, what do you think perspective?
your boss will say? c. Is your action legal?
2. Regarding your offer of the “advertising” discount: 4. Describe the effect of your activities on next quarter’s
a. Is your action ethical according to the categorical im- inventories.
perative perspective? 5. Setting aside ethical and legal issues, would you say the
b. Is your action ethical according to the utilitarian enterprise system is more of a help or a hindrance in this
perspective? example?

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