The first mistake made by Pacific Healthcare Company was that of Mr. Thurston Howell, Director of Radiology responsible for the selection of X-ray film suppliers for the company. Mr. Howell may have extensive experience in radiology, but that does not mean he has any experience in supply chain management. This choice made by the company has cost them thousands of dollars in losses over the last fifteen years. Mr. Howell made decisions on the selection of X-ray film supplies. Another problem the company encountered, due to Mr. Howell's inexperience in supply chain management, was allowing Kodak films to be the only authorized film supplier for the company. Because film companies were not allowed to compete, Mr. Howell failed to understand that Kodak films were by far the most successful among their