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DEVRY BSOP434 FULL COURSE [ all disscussn all labs all assignment all quiz and final

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Question;BSOP 434 Week 1 Discussion 1Why do inventories cost so much to maintain? Provide some examples of how cost is associated with carrying an inventory. Is there anything we can do to lower this cost, and if so, what? In addition to the question above, explain how excess inventories can erode profitability.BSOP 434 Week 1Discussion2Discuss why supply chain management (SCM) has become so important. Identify companies that have a well known SCM system. Do these companies have anything in common when it comes to their implementation of SCM? Can you identify and define four (4) attributes of Supply Chain Management?BSOP 434 Week 2Discussion1How can a transportation manager take advantage of trade-offs between price and service? As a transportation manager, when would you want to take advantage of these trade-offs?BSOP 434 Week 2Discussion2Discuss the location selection criteria for distribution centers, warehouses, and manufacturing plants. How might these factors be considered important when locating a manufacturing facility? How do they differ from the factors considered important when locating a distribution facility?BSOP 434 Week 3Discussion1What type of functional and perceptual benefits do labeling and packaging provide to the consumer? What are the two emerging trends in packaging and why are they important?BSOP 434 Week 3Discussion2What role has technology had in order processing? What are some of the key technology elements that you see in your daily shopping? What do you think will be the next big technology development in order processing?BSOP 434 Week 4Discussion1What is the relationship between purchasing and procurement? Discuss three potential procurement objectives. Describe the relevance of the procurement process in a logistics system.BSOP 434 Week 4Discussion2Discuss how developing nations ensure that a good portion of supply chain transactions are conducted within their borders. What are some of the challenges associated with the international logistics?BSOP 434 Week 5Discussion1Discuss how accountants and logistic professions differ in terms of their approach to inventory control. Provide an example of how each would measure a company?s inventory.BSOP 434 Week 5Discussion2In logistical terms, what does system analysis refer to? What is the difference between a partial systems analysis and a comprehensive systems analysis?BSOP 434 Week 6Discussion1Explain why transport rates typically vary by 1) the weight of the shipment, 2) the distance a shipment is transported, and 3) the value of the transport service. Provide an example of how these variables affect a shipping rate.BSOP 434 Week 6Discussion2Contrast qualitative, historical projection, and causal forecasting models. What are the strengths and weaknesses ofeach of these models?BSOP 434 Week 7Discussion1Discuss the differences between facility layouts for office, production, and warehouses. How does the layout of a warehouse impact the effectiveness and efficiency of a warehouse?BSOP 434 Week 7Discussion2Warehouse Management System What is a warehouse management system (WMS)? What are the benefits and downfalls of a WMS in a warehousing operation?week 3 quizQuestion 1.1.(TCO 2) Which of the following is not or are;not key attributes of supply chain management?(Points: 3);Inventory control;Leveraging technology;Customer power;A long-term orientation;All are key attributes.;Question 2.2.(TCO 2) The movement and storage of materials;into a firm refers to(Points: 3);physical distribution.;materials management.;materials handling.;inbound logistics.;outbound logistics.;Question 3.3.(TCO 2) An organization?s ability to respond to;changes in demand, with respect to volume and variety, refers to _____.(Points;3);responsiveness;leanness;agility;relevancy;Question 4.4.(TCO 2) Cooperative supply chain relationships;developed to enhance the overall business performance of both parties is a;definition of (Points: 3);third-party logistics.;supply chain collaboration.;dovetailing.;relationship marketing.;Question 5.5.(TCO 1) Stocks of goods and materials;maintained for satisfaction of demand are known as (Points: 3);supply chain.;inventory.;safety stock.;inventory management.;None of the above;Question 6.6.(TCO 1) The reorder point (ROP) is defined as;the (Points: 3);point used for calculating safety stock.;highest inventory level allowed.;lowest inventory level allowed.;fixed level of inventory at which a replenishment order is;placed.;None of the above;Question 7.7.(TCO 1) _____ stock refers to inventory en;route between various nodes in a logistics system. (Points: 3);Base;Safety;Pipeline;Speculative;Page 2;Question 1.1.(TCO 3) Rate structures deal with three;factors. Which of the following is not one of them? (Points: 3);Homework1There are five questions this week. Your responses should be brief and to the point, written in a short essay style. This work should adhere to APA guidelines. See Doc Sharing for grading rubric.Chapter 1: p. 19, question 1.2Chapter 5: p. 90, questions 5.5 and 5.6Chapter 8: p. 150, questions 8.7 and 8.17Submit your assignment to the Dropbox located on the silver tab at the top of this page.1.2 Distinguish;between possession, form, time, and place utility.5.5 What is the;difference between a lean and an agile supply chain? Under what circumstances;is each an appropriate supply chain approach to pursue?5.6 Discuss some of;the ways that inventory can be reduced in the supply chain.8.7 Distinguish between a fixed order quantity and fixed order interval;system. Which one generally requires more safety stock? Why?]="msonormal">="msonormal">="msonormal">="msonormal">8.17 How do the;consequences of JIT go far beyond inventory management?="msonormal">="msonormal">="msonormal">="msonormal">Homework2There are five questions this week. Your responses should be brief and to the point, written in a short essay style. This work should adhere to APA guidelines. See Doc Sharing for grading rubric.Chapter 9: p. 168, questions 9.4, 9.8 and 9.15Chapter 12: p. 226, questions 12.1 and 12.2Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these9.4 Discuss the factors that influence the number of facilities that a firm chooses to operate.="msonormal">9.15 Explain why quality-of-life issues should be considered in the facility location decision.12.1 Why is transportation important to a firm?s supply chain operations?12.2 Why is it important to know about the characteristics of a country?s transportation infrastructure?="msonormal">="msonormal">Homework3There are five questions this week. Your responses should be brief, to the point, and written in a short essay style. Your work should adhere to the APA guidelines. Please see Doc Sharing for the grading rubric.Chapter 7: p. 126, questions 7.2 and 7.3Chapter 11: p. 207, questions 11.1 and 11.7, 11.9Submit your assignment to the Dropbox located on the silver tab at the top of this page.7.2 Discuss the three basic demand forecasting models.="msonormal">="msonormal">="msonormal">7.3 Discuss several demand forecasting issues.11.1 How do product characteristics influence packaging and materials handling="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">11.7 Discuss some of the labeling requirements associated with hazardous materials.11.9 What environmentally friendly packaging strategies might a firm adopt?="msonormal">="msonormal">="msonormal">Homework4There are five questions this week. Your responses should be brief, to the point, and written in a short essay style. This work should adhere to the APA guidelines. Please see Doc Sharing for the grading rubric.Chapter 6: p. 103, questions 6.1, 6.4, and 6.7Chapter 14: p. 273, questions 14.1 and 14.11Submit your assignment to the Dropbox located on the silver tab at the top of this page6.1;What is procurement? What is its relevance to logistics?6.4;Discuss three potential procurement objectives.6.7;What are the two primary approaches for evaluating suppliers? How do they;differ?="msonormal">="msonormal">14.1;Discuss some of the key political restrictions on cross-border trade.14.11;What are the two primary purposes of export packing?Homework 5There are five questions this week. Your responses should be brief, to the point, and written in a short essay style. Your work should adhere to the APA guidelines. Please see Doc Sharing for the grading rubric.Chapter 2: p. 37, question 2.2Chapter 3: p. 51, questions 3.5 and 3.12Chapter 4: p. 70, questions 4.3 and 4.8Submit your assignment to the Dropbox located on the silver tab at the top of this page. For;2.2. List;the six general types of information management systems, and give one logistics;application for each one that you?ve named.3.5.What are the key;components of the strategic profit model? How can it be used to examine the;affect of logistics decisions?="msonormal">3.12. Most managers believe that while it is;possible to connect logistics decisions to costs, the connection to revenue;enhancement is difficult to impossible. Do you agree or disagree? Why?.8. Discuss;how technological considerations can help in managing truck drivers and their;productivity.;QuestionHomework6There are five questions this week. Your responses should be brief and to the point, written in a short essay style. Your work should adhere to APA guidelines. See Doc Sharing for grading rubric Type over this text with the Homework assignment(s).Chapter 7: p. 126, questions 7.4 and 7.6Chapter 13: p. 249, questions 13.3, 13.4, and 13.18Submit your assignment to the Dropbox located on the silver tab at the top of this page.7.4;Define and describe the order cycle. Why is it considered an important aspect;of customer service?7.6;List the various methods of order transmittal and discuss relevant;characteristics of each.13.3;Discuss how transportation managers could be involved with other operations of;the firm.="msonormal">13.4;What are the three primary factors that determine transportation rates?13.18;Explain how a routing guide might be used by a transportation manager.Homework7There are four questions this week. Your responses should be brief and to the point, written in a short essay style. This work should adhere to APA guidelines. See Doc Sharing for grading rubric.Chapter 10: p. 187, questions 10.3, 10.5, 10.11 and 10.18.10.3;Distinguish among warehouses, distribution centers, and cross-docking;facilities.10.5 What;are the advantages and disadvantages of private warehousing?="msonormal">="msonormal">10.11;Discuss the trade-offs associated with order picking versus stock-replenishing;functions.10.18 What;is a hazardous material? What design elements should be considered when storing;hazardous materials?="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">Lab 1: Low Nail CompanyNote!="msonormal">="msonormal">Submit your assignment to the Dropbox located on the silver tab at the top of this page.(See the Syllabus section "Due Dates for Assignments & Exams" for due dates.)Scenario/SummaryAfter making some wise short-term investments at a race track, Chris Low had some additional cash to invest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain of how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without regard to size, and warehousing costs, which were $1 per year per keg space. This meant that Low had to rent a constant amount of warehouse space for the year, and it had to be large enough to accommodate an entire order when it arrived. Low was not worried about maintaining safety stocks, mainly because the outward flow of goods was so even. Low bought his nails on a delivered basis.DeliverablesThis week?s lab consists of six questions. Please be certain that you answer all of the questions and address all of the areas outlined in the grading rubric below.t the answer to Question 1 and the supplier?s new policy outlined in Question 2, and the warehouse?s new policy in Question 3. Then determine Low?s new EOQ.Step 5: Financing InventoryBack to TopQuestion 5: Temporarily ignore your work on Questions 2, 3, and 4. Low?s luck at the race track is over, he now must borrow money to finance his inventory of nails. Looking at the situation outlined in Question 1, assume that the wholesale cost of nails is $40 per keg and that Low must pay interest at the rate of 1.5% per month on unsold inventory. What is his new EOQ?Step 6: Final EOQBack to TopQuestion 6: Taking into account all of the factors listed in Questions 1, 2, 3, and 5, calculate Low?s EOQ for kegs of nails.Step 7: Final StepBack to TopSubmit your completed assignment to the this week's Lab Dropbox in a MS Word document for grading. The cover page should adhere to the APA 6.0 guidelines.See the Syllabus section "Due Dates for Assignments & Exams" for due dates.Grading RubricBack to TopBe sure to answer all of the questions.It is recommended that you show all of your work. If you only provide the answers and any of them are incorrect, you will lose all of the points allocated to the incorrect answer. However, if you show your work, you might be able to earn partial credit even if the answer is incorrect. An example would be if you set up the problem correctly, but then made a math error in calculations. PrintLab 2: Aero Marine Logistics (AML)Note!Submit your assignment to the Dropbox located on the silver tab at the top of this page.(See the Syllabus section "Due Dates for Assignments & Exams" for due dates.)Scenario/SummaryAero Marine Logistics (AML) was incorporated as a Private Limited Company in South Delhi in the year 1996. The promoters of AML are two professionals who had gathered 15 years of experience working for Tata Steel (one of the biggest and oldest companies in India) in the field of shipping, customs clearance, forwarding, and transportation. Over the last five years, AML has been successful in building an infrastructure and pool of experienced personnel to handle the entire gamut of logistics. In fact, it was one of the first companies to offer door-to-door delivery. It considers itself the specialists in customized solutions and services?a concept that is still unheard of in the transportation industry in the rural belts of northern India. AML handles the entire package of logistics for all its customers. Some of the services they offer include the following.Import consolidation. AML has a well-spread network of offices and trade connections in the United States, Europe, the Far East, and the Middle East to render import consolidation by both air and sea to any part of India. It promises a personalized, prompt service with value for cost.Door-to-door services. AML is fully equipped to deliver door to door, which includes cargo pickup from the supplier?s warehouse, warehousing prior to customs clearance, complete customs clearance of exports from overseas, and freight booking with airlines and shipping lines to receive cargo in India. It also undertakes local customs clearance and transportation to deliver to the door of the customer.Exports. AML has expertise in handling exports of various kinds of cargo by ocean and by air freight. It ensures the timely movement of cargo at the most competitive rates. It takes care of both the complete export documentation formalities and the physical movement of cargo.Consultancy on customs and logistics. AML is well-equipped with professionals to guide customers regarding various modes of transportation and to help customers to optimize utilization of space and save on freight. It acts as liaison with different authorities, such as the RBI (Reserve Bank of India), Port Authority of India, India Civil Aviation Regulatory Body, TEXPROCIL (The Cotton Textiles Export Promotion Council of India), DGFT (Directorate General of Foreign Trade), and so on, on behalf of clients for various permissions and quotas related to import and export of cargo. This could perhaps be classified as its most valuable service, which it hopes will build up its brand image. The red tape, bureaucracy, lack of work ethic, and corruption preclude anyone lacking either clout or established relationship channels (with babus or permanent government employees, notorious for their apathy toward fulfilling job duties and penchant for taking bribes) to do business in India.To enable itself to offer these services, AML has partnered with various associates all over the world to render forwarding services to its customers. It has covered warehouse space of 1,000 square meters and has the ability to arrange for additional space. It has its own two 407 Tata trucks for pickup and delivery of small consignments. It has dedicated a fleet of five low-bed trailers for pickup and delivery of containers. All the field personnel have been provided with two-wheelers for faster conveyance between various points of work.AML has grown rapidly and recently established an online presence whereby clients can place orders online and check the status of their cargo. So far, the increase in sales from the online presence has not been much. Most of AML?s clients are spread out in rural areas and, except for customers in Delhi, do not have access to the Internet. Today, AML is handling an average of 200-plus TEUs (20-foot container equivalents) of imports and exports every month between Delhi and Mumbai (Bombay), which is the nearest big port (a distance of 1,407 kilometers, see Exhibit 8-A.) Luckily, most containers are used for traffic in both directions, moving empties is unproductive. Main items for export are bathroom fittings and spares, machine spares and agricultural equipment, machine spares and chemicals, scientific equipment, medical equipment spares and chemicals, food processing machinery, furniture and kitchen equipment, and interiors. Main items for import are automobile engines and spares, cotton yarn, food products, electronics, televisions and components, rice, stone for stone crafting, and so forth.Recently, one of the AML partners, Mr. S. Singh, was approached by the Chairman of Freshfoods, Mr. R. Maan, with a promise of a huge potential volume (150,000 kilograms per month) for importing frozen mushrooms from Europe if AML would build up its Indian infrastructure to handle such volumes. Freshfoods is the biggest regional exporter and importer of food products in North India. It was founded 20 years ago by a collective of farmers wanting to find markets for their surplus produce of exotic and nonnative foods (like avocados and strawberries) that did not have much local demand except for five-star hotels catering to mostly foreign tourists. The shift in eating habits in recent years had prompted Mr. Maan to promote mushrooms as a daily food item in a major way. To keep the price of imported mushrooms comparable with locally grown food items, huge quantities would have to be transacted to make use of economies of scale.the costs of leasing refrigerated containers. He was disappointed to learn that leasing was almost impossible. The container leasing companies wanted exorbitant rates because there was no backhaul traffic requiring refrigerated equipment and because some areas in North India were too isolated if they needed to send a worker to service malfunctioning equipment. The container leasing company did, however, offer to sell used refrigerated 20-foot containers for seven lakhs apiece and would agree to service them for one year at an additional cost of 1 lakh per container. The used containers could be expected to last another five years. In a meeting involving Mr. Singh, Mr. Maan, and Mr. Veejay, a carrier representative, it was decided that ten 20-foot containers would be sufficient to handle the projected volume of mushrooms. Each container would make one round-trip each month. The cost of ocean freight expense from Amsterdam to Mumbai is $1700US for a single 20-foot container. The cost of land transportation per single 20-foot container from Mumbai to Delhi is $300US. Return costs for empty containers from Delhi to Mumbai to Amsterdam are half as much, although about 10% of the time, another cargo can be found that will cover the costs of return transport.As the meeting broke up, Mr. Veejay said that the mushrooms were not a very dense cargo and that Mr. Singh could be using 40-foot refrigerated containers, which held twice as much as a 20-foot container, though handling costs were less than twice as much. The cost of ocean freight from Amsterdam to Mumbai is $2600US for a single 40-foot container. The cost of transportation per single 40-foot container from Mumbai to Delhi is $500US. Return costs from Delhi to Mumbai to Amsterdam are half as much, although about 10% of the time another cargo can be found that will cover the costs of return transport. Mr. Veejay felt that the 40-foot containers would need to be purchased. Five would be needed, with each making one round-trip per month. Containers were only available new, and the cost would be 15 lakhs apiece. Maintenance anywhere was guaranteed for the first year, and the containers had an estimated life of 10 years.DeliverablesThis week?s lab consists of five questions. Please be certain you answer all the questions and address all the areas outlined in the grading below.Question 4: Mr. Singh has read about the supply-chain concept that attempts to identify and link all the participants from suppliers? suppliers to customers? customers. Who are all the participants in the supply chain, a part of which has been discussed in the case?Step 5: SharingBack to TopQuestion 5: Logistics partnerships involve sharing costs and risks. What are all the costs and risks that this venture entails? How might they be shared?Step 6: Final StepBack to TopSubmit your completed assignment to the this week's Lab Dropbox in a MS Word document for grading. The cover page should adhere to the APA 6.0 guideline.See the Syllabus section "Due Dates for Assignments & Exams" for due dates.PrintLab 4: Easing Ira?s IreNote!Submit your assignment to the Dropbox located on the silver tab at the top of this page.(See the Syllabus section "Due Dates for Assignments & Exams" for due dates.)Scenario/SummaryIra Pollack was difficult to work for. A self-made millionaire, he paid extremely high salaries, but demanded much from his subordinates, including being on call 24-hours per day. In his Las Vegas penthouse, he would study and re-study each detail of his conglomerate?s performance and then call some unlucky underling?at any hour?to vent his anger and demand that something be improved. His tantrums were legendary.One of Pollack?s underlings, Tamara Wood, was driving her new red Mercedes convertible along Rodeo Drive in Beverly Hills, looking for a parking space. Her college class from Northern Illinois University at DeKalb was holding its fifth reunion in Chicago, which she planned to attend. She wanted to buy a new outfit for the event, to show her former classmates that she had arrived. A chauffeur-driven Rolls pulled away from the curb, leaving an empty space right in front of her favorite couturier. She swung her Mercedes expertly into the empty space, looked up, and was pleased to see that there was still nearly an hour left on the meter. ?Daddy was right,? she thought to herself, ?Clean living does pay off.?As she turned off the ignition, Tamara?s cell phone started buzzing. Wood hesitated. Would it be John, calling to thank her for that wonderful evening? Would it be Matt, seeing if she were free to spend next weekend on Catalina Island? Or maybe it was Jason, who was always wanting her to accompany him to Waikiki. She finally picked up the phone and sweetly said, ?Hello.??Don?t ?hello? me!? shouted a man?s voice at the other end.Wood?s stomach churned, her muscles tightened, and she said, weakly, ?Sorry, Mr. Pollack, I was expecting somebody else.??That?s obvious,? he retorted. ?At this hour of the day, you?re on my time and should be thinking of business. How come you?re not in the office???I?m just making a customer service follow-up,? responded Wood, hoping that Mr. Pollack would not ask for too many details.?Well, you should be worried about customer service,? said Pollack. ?That?s why I?ve called. I?ve been studying performance records for all my operations dealing with the amount of time that elapses between our receipt of an order and when our customer receives a shipment. The performance of your distribution center in West Hollywood stinks! Drop what you?re doing and get back to your office and figure out what?s wrong! Then tell me what?s needed to speed up your operation. Call me as soon as you have answers.?Wood heard the phone click. She forgot about DeKalb. She forgot about Chicago and the new outfit. She forgot about her night with John, about Catalina Island and Waikiki. She heard a faint beep to her left. She saw a maroon Jaguar with a Beverly Hills matron motioning with one of her white-gloved hands as if to say, ?If you?re leaving, may I have your parking spot??Muttering to herself, she pulled into her reserved slot next to the West Hollywood distribution center. ?Aloha!? chirped Ellen Scott, her assistant, as she walked in. ?Jason has called three times about wanting you to fly to Hawaii. Also, you have two calls from John, one from Matt, one from your mother, who asked why you never phone her, and one from some fellow who wouldn?t leave his name, but said it was very personal. Tell me about the outfit you bought. I?ll bet it?s stunning.??Forget about them, and hold all my calls,? said Wood, crisply. ?I?m not going anywhere. Pollack called me and is mad because our order processing and delivery times are out of whack.?Two days passed. Wood had put her social life on hold and had not even phoned her mother. All her time was spent trying to figure out how to speed up her order-processing system. But she didn?t know how to start. The accuracy of the system was not an issue, although additional costs could be. When Pollack paid his bonuses last year, he had told Wood that if her operation had cost one cent more to run, she would not have receive a bonus. Because her bonus had paid for her new Mercedes, Wood was cost-conscious, to say the least.Wood?s assistant helped her, too?at least through late Friday afternoon. Scott explained that she couldn?t work on Saturday and Sunday because she?d accepted an invitation to spend the weekend at Catalina Island with an unnamed friend. Before Scott left, she and Wood had decided that there were 12 distinct operations involved in processing and shipping orders. Some could be performed at the same time, whereas others had to be performed in sequence?that is, one could not be started until the other was completed. (These tasks, the amount of time it takes to complete each, and the sequential relationships, if any, are shown in Exhibit 11-A.)After compiling the information shown in Exhibit 11-A, Scott left. Wood was left with the task of trying to relate all those tasks to each other. She recalled a college textbook that she had never much cared for but that she had come across a few weeks earlier as she was searching for her Northern Illinois University yearbook. Wood looked at a PERT chart in that book and knew that she would have to construct something similar to analyze the distribution center?s order processing and shipping operations. She studied the text accompanying the chart, sighed, and thought to herself, ?Where was I or at least where was my mind?the day the professor explained all of this in class?DeliverablesThis week?s lab consists of five questions. Please be certain you answer all the questions and address all the areas outlined in the grading below.LAB STEPSStep 1: PERT ChartBack to TopQuestion 1: Arrange the tasks shown in Exhibit 11-A in a network or PERT chart.Step 2: Critical PathBack to TopQuestion 2: Determine the critical path. What is the least amount of time it takes between receipt of an order and its delivery to a customer?Step 3: RiskBack to Top that she?s a Californian ready for the race down the information superhighway, Wood wants to be able to impress Pollack with her knowledge of current technology. Recently, a sales representative from a warehouse equipment company called, trying to interest her in installing a Star Wars?Robotic? order picker for the warehouse. Controlled by lasers and powered by magnetic levitation, the device can pick orders (task H) in 15 minutes, rather than 6 hours (0.75 day), the current time needed. How valuable would such a device be to Wood? Why?Step 5: Faster TransportationBack to TopQuestion 5: Another alternative is to use faster transportation. How should Wood choose between paying more for faster transportation and paying more for other improvements? Assume that her only goal is speed.Step 6: Final StepBack to TopSubmit your completed assignment to the this week's Lab Dropbox in a MS Word document for grading. The cover page should adhere to the APA 6.0 guideline.See the Syllabus section "Due Dates for Assignments & Exams" for due dates.Grading RubricBack to TopBe sure to answer all the questions.It is recommended that you show all of your work. If you only provide the answers and any of them are incorrect, you will lose all of the points allocated to the incorrect answer. However, if you show your work you might be able to obtain partial credit even if the answer is incorrect (e.g., you set up the problem correctly but you make a math error in your calculations).Lab 5: Columbia Lumber Products CompanyNote!="msonormal">="msonormal">Submit your assignment to the Dropbox located on the silver tab at the top of this page.(See the Syllabus section "Due Dates for Assignments & Exams" for due dates.)Scenario/SummaryThe Columbia Lumber Products Company (CLPC) was headquartered in Portland, Oregon, where it had been founded in 1899. For many years, its principal product had been only lumber, in the 1940s it began producing plywood, and in 1960, particle board. The first two products, lumber and plywood, were produced at various sites in Oregon, and marketed on the West Coast and as far east as Chicago.Particle board was produced in Duluth, Minnesota, at a plant built in 1962 with a U.S. Area Redevelopment Administration Loan. Initially, the input to the plant was trimmings and other scrap from CLPC?s Oregon operations. Particle board sales increased so quickly that the Duluth operation consumed not only all of the former waste from CLPC?s Oregon plant but also waste purchased from various lumber and wood products operations in Minnesota and northern Wisconsin.In terms of product volume, CLPC?s sales doubled between 1960 and 1990. However, nearly all the growth had been in particle board, lumber and plywood sales remained relatively constant (though varying with changes in the home construction industry). In 1996, exports accounted for 9% of CLPC?s sales. Nearly all of this was plywood sold to Japan. Fifteen percent of CLPC?s 1996 purchases were from foreign sources, 5% was mahogany from the Philippines used for plywood veneer, and 10% was wood scrap purchased from Ontario, Canada, for use in CLPC?s Duluth plant. Particle board produced in Duluth was marketed in all states east of the Rocky Mountains, although sales in the southern United States were somewhat less than spectacular.The slowdown in home production, which started in the late 1970s in the Midwest, really never ended and resulted in many years of little or no growth in CLPC?s sales. Common stock dividends had been cut several times. In 1996, they were 37 cents per share, down considerably from their peak?in 1976?of $2.21.Stockholders, the outside directors, and various lending institutions were becoming increasingly unhappy. After a long, tense board of directors meeting, agreement was reached only with respect to what some of the organizational problems were. A partial list follows.The corporate headquarters was in Portland, although all growth occurred in the Midwest. Possibly, the headquarters, or at least more functions, should be shifted to an office in Duluth where the plant was, or to Chicago, the largest sales office. A major relocation away from Portland would be difficult. Many employees would choose to remain on the West Coast. Even for those willing to relocate, there

 

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