AS9100D: Do you need to reject entire lots

A manufacturer of aerospace parts uses a material to assist in his process. The manufacturer notices a defect in this material. The supplier of the material identifies the defect, quarantines the defective material and issues cause and corrective action report. The manufacturer rightfully rejects the material identified as defective BUT also all material associated with the sale lot number even though the supplier has certified this material as within specification and not defective.
The bad parts manufacturer claims he MUST reject the entire lot based on AS9100 rules. Do you agree with the manufacturer’s position?

Answer:
An interesting question, but not an AS9100 requirement. Section 8.7 of AS9100 Rev D does not state that an entire lot needs to be rejected due to one bad part, and does not preclude sorting out the good parts from the in a lot for use. Section 8.4 on Control of externally provided processes, products and services also does not preclude the use of the acceptable products in a lot, nor does it state that you need to impose full lot acceptability on your suppliers.
That being said there may be a customer requirement or an internal requirement to this affect, but it is not correct to attribute this strict control on AS9100.
For some other information on AS9100 Myths see this article: https://advisera.com/9100academy/blog/2017/08/21/6-common-myths-about-as9100-rev-d/