In late May, Mr. Metz of the headquarter group in Frankfurt visited Cologne. During a review of GMD's
problems, the plastic ring case was discussed. Although the ring was a very small part of the finished
machines, Mr. Metz was interested in the problem because the holding company wanted all divisions
to establish comparable policies for the production and pricing of all such parts. Mr. Metz pointed out
to Mr. Kurtz that replacement parts pricing and availability was a critical component of Reichard's
business strategy. Metz saw no problem with GMD getting ready to produce plastic rings, although he
was sceptical of the market acceptance of such a product. But, he added, "I would certainly expect
you to recover your investment in steel inventory." Mr. Kurtz understood that he would need a very
good story if he decided to scrap any of the steel rings or raw material