To Report or Not to Report

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There are bugs in the software that my team (as the reader) received from our vendor. The team wants to move on with production and let the user's deal with the bugs in consumption. I do not think this is the correct way to deliver a system.

D: report the bugs to Senior VP of Software.
D': let the buggy system be sent to the customer.
B: ensure the best product is sent to the customer.
C: ensure that the project doesn't fall behind schedule.
A: have a good reputation within the company.
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In order to have a good reputation within the company. I must ensure the best product is sent to the customer. and in order to ensure the best product is sent to the customer. I must report the bugs to Senior VP of Software.. But, in order to have a good reputation within the company. I must also ensure that the project doesn't fall behind schedule. and in order to ensure that the project doesn't fall behind schedule. I must let the buggy system be sent to the customer.. I can't both report the bugs to Senior VP of Software. and let the buggy system be sent to the customer..
RelationAssumption(s)Injection(s)
D-D'reporting the bugs will cause scope creep and will keep the product from being sent to the customer.Notify the customer that you are using agile development and there will be bugs in the system.
B-Da bugged system is not the best product that could be offered.This assumption is always true.
C-D'if the bugged module is sent back to the vendor it will put the product behind schedule.Move the project due date to a later date.