MEMORANDUM
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TO: Prez E. Dent September 19, 2013 Chief Executive Officer (CEO) The Toy Company FROM: Elementary Division Manager

Background:
Memorandum in response to the recent notification that a large shipment of whistles scheduled to ship to elementary schools in South America at the end of week has failed to meet the U.S. requirements of lead limits by a slight margin.
A1. Decision Alternative The primary market for the elementary toy collection is elementary schools. The metal whistles in question did not pass testing due to the small traces of lead. The amount of lead included in the whistles was slightly above the U.S. legally acceptable limits for children ages 7 and younger. The approximate cost to reproduce the product and repackage the toy collections is $100,000. There are a few more questions to pose and/or further data to collect in determining the best alternatives to pose. Are the standards for lead content changed if the market is adjusted for adults? We will assume that since we are a toy manufacturer that that loophole is not even a consideration for us regardless of the possible change in requirement. Another question would be; do we have a market in areas that do not require lead testing? For decision alternative presentation we will move forward in assuming that the answer to that question is yes. Decision Option 1: Go ahead and ship!
As a company we must keep our profit margin in mind at all times. If we do not ship the product out on time as scheduled we run the risk of losing the customer. Not to mention the loss of money from product loss and man hours wasted if the product is scrapped and not shipped out.
The shipment is going to South America and not the U.S. so we can “overlook” the test results since the