1. The key ethical issue of American clothing company.
a) The key ethical issue of American clothing company is it has to do something to meet the losses in slack sales periods caused by too many workers such as layoffs. However, such behavior is deviated from the company’s fundamental tenet for this company take the concept that apparel manufacturing should treat worker as well as possible.
b) Reasons for such ethical issue are 1) Treating employees well is the company’s core belief. Randomly laying off workers contradicts to the values, but 2) the reality force determines that the company has to do something to avert the loss. Therefore, American Clothing Company faces the dilemma of making trade-offs between these two.

2. Two
4. 2 options, which will solve the ethical dilemma.
There are two options I can choose to solve the ethical dilemma:
1) a) Lay off parts of employees between October and March. Since 1/3 of products are exceeded, the company should layoff more than 1/3 of the workers. Since some workers’ productivity is higher than others, we can decide to layoff workers who have the lowest productivity, and the quantity is anticipated to be 2/5 of original number, about 1200 people.
b) The reason for option 1 is it could maximize shareholders’ profits. Laying off employees can reduce the products and wages. Hence, the company can avoid financial deficits. Besides, laying off the workers in the winter season is a common thing to do in the apparel industry, and employees will be back. The number of experienced workers can be ensured next year.
c) Lying off workers solves the ethical dilemma in that it reduces the expenses caused by too many workers. In addition, it is normal to lay off employees in winter in manufacture industry. Public may be sympathetic for the decision.
2) a) American Clothing Company will not lay off any employees but can limit each sewer’s products each day. Since the pikes demands is no more than 2/3 of the original number, and the wages for sewers are based on pieces and each sewer sews an average of 20 dozen pieces every day, therefore, the company can set the upper limit (160 pieces each day) to sewers.