The first mistake Pacific Healthcare Company made was to entrust Mr. Thurston Howell, Director of Radiology, with the selection of X-ray film suppliers at the company. Mr. Howell may have experience in the world of radiology, but that doesn't mean he has experience in supply chain management. This choice made by the company has cost thousands of dollars in losses over the last fifteen years. Mr. Howell made decisions about the selection of X-ray film supplies. Another problem the company had, stemming from Mr. Howell's inexperience in managing the supply chain, was allowing Kodak film to be the only authorized film supplier for the company. Since film companies were not allowed to compete, Mr. Howell failed to see that Kodak film was by far the highest quality of his