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1. (35 points) The United States Post Office provi...

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1. (35 points) The United States Post Office provides an array of services which according to recent reports to Congress has resulted in billions in annual losses. A special committee has identified potential services that could be reduced or eliminated as follows: a. Reduce days of delivery from six to five days i.e. eliminate Saturday delivery for residential and commercial customers b. Eliminate special delivery services such as express mail and certified mail c. Change the pricing structure for bulk (aka junk mail) to discourage use and encourage digital distribution to save costs on transportation, storage and labor d. Consider eliminating other services such as passport and Post Office Box (POB) and any other non mail processing and delivery services Use the above information to develop a framework for a recommendation for the USPS to continue or discontinue two of the services above. Your discussion should consider a make or buy decision or product line discontinuation decision or outsourcing decision or any combination with identification of the relevant costs to be considered. Your response should outline the quantitative factors such as relevant/avoidable/differential costs as well as the qualitative factors that should be considered in your decision. Provide an opinion assuming you had the appropriate information on what the USPS should do regarding future services.

 

Paper#6052 | Written in 18-Jul-2015

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