Thursday, 5 November 2015



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BSOP 434 Week 1 Assignment

2. Distinguish between possession, form, time, and place utility.
4. Why do contemporary supply chains need to be fast and agile?
8. Discuss some of the ways that inventory can be reduced in the supply chain.
5. Distinguish between a fixed order quantity and fixed order interval system. Which one generally requires more safety stock? Why?

9. What are implications of the JIT approach for supply chain management?

BSOP 434 Week 2 Assignment

Chapter 6: Questions 1 and 2 (p. 153):
Question 1. Why is transportation important to a firm’s supply chain operations?
Question 2. Why is it important to know about the characteristics of a country’s transportation infrastructure?
Chapter 8: Questions 2, 8, and 16 (p. 208):
Question 2. Discuss the factors that influence the number of facilities that a firm chooses to operate.
Question 8. Discuss the advantages and disadvantages to locating manufacturing, assembly, or distribution facilities in countries with relatively low wages.
Question 16. What quality-of-life considerations do you think are the most important for locational decisions? Why?

BSOP 434 Week 3 Assignment

Chapter 4:
Question 2. Discuss the three basic demand forecasting models.
Question 3. List and discuss several demand forecasting issues.
Chapter 5:
Question 1. How do product characteristics influence packaging and materials handling considerations?
Question 2. Discuss some of the packaging requirements associated with hazardous cargo.
Question 10. What environmentally friendly packaging strategies might a firm adopt?

BSOP 434 Week 4 Assignment

Chapter 11:
Question 1: What is procurement? What is its relevance to logistics?
Question 3: Discuss three potential procurement objectives.
Question 10: Discuss the Malcolm Baldrige National Quality Award.
Chapter 12:
Question 2: Discuss some of the challenges associated with international logistics.
Question 12: What are the two primary purposes of export packing?

BSOP 434 Week 5 Assignment

Chapter 3:
Question 3: Name the six general types of information management systems, and give one logistics application for each one that you’ve named.
Chapter 13:
Question 2: What is activity-based costing (ABC)? What are the five steps of the ABC process?
Question 17: Describe the two issues that managers face with respect to computer and data security.
Chapter 14:
Question 3: What are the differences between a centralized and a decentralized logistics department?
Question 20: Name the seven types of comprehensive logistics systems audits that should be performed. Which do you view as the most important? The least important? Why?

BSOP 434 Week 6 Assignment

Chapter 4: Questions 5: Define and describe the order cycle. Why is it considered an important aspect of customer service?
Chapter 4: Questions 8: List the various methods of order transmittal and discuss relevant characteristics of each.
Chapter 7: Questions 2: Discuss how transportation managers could be involved with other operations of the firm.
Chapter 7: Questions 5 : Explain the weight break concept.
Chapter 7: Questions 17: Explain how a routing guide might be used by a transportation manager.

BSOP 434 Week 7 Assignment

1) Distinguish between warehouses and distribution centers.
4) What is cross-docking? How might it affect warehousing design?
6) What are the advantages and disadvantages of private warehousing?
11) Discuss the trade-offs associated with order-picking versus stock-replenishing functions.
18) How might the storage of hazardous materials affect the design of a warehousing facility?

BSOP 434 Week 1 Lab

Lab Assignment:
1. After 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. On average, the rented warehouse space is only half full. 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.
Question 1: Using the EOQ methods outlined in Chapter 9, determine how many kegs of nails Low should order at one time.
Step 2: Low-Quantity Discount
Question 2: Assume that all conditions in Question 1 hold, except that Low’s supplier now offers a quantity discount in the form of absorbing all or part of Low’s order-processing costs. For orders of 750 or more kegs of nails, the supplier will absorb all order-processing costs; for orders between 249 and 749 kegs, the supplier will absorb half. What is Low’s new EOQ? (It might be useful to lay out all costs in tabular form for this and later questions.)
Step 3: Low Rent
Question 3: Temporarily ignore your work on Question 2. Assume that Low’s warehouse offers to rent Low space on the basis of the average number of kegs that Low will have in stock, rather than on the maximum number of kegs that Low would need room for whenever a new shipment arrived. The storage charge per keg remains the same. Does this change the answer to Question 1? If so, what is the new answer?
Step 4: New EOQ
Question 4: Take into account 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 Inventory
Question 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 EOQ
Question 6: Taking into account all of the factors listed in Questions 1, 2, 3, and 5, calculate Low’s EOQ for kegs of nails.

BSOP 434 Week 2 Lab Aero Marine Logistics (AML)

Lab 2: Aero Marine Logistics (AML)
See Due Dates for Assignments & Exams in the Syllabus for Lab due dates.
Submit your assignment to the Dropbox located on the silver tab at the top of this page.
Aero 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.
Mr. Singh realized that the first order from Mr. Maan was an experiment and that further orders would depend on whether the product caught on or not. AML needed to bet on a huge surge in demand for frozen mushrooms in the region if it wanted to be part of this new trend from the very beginning. Singh’s partner—Mr. Kumar—is wary of investing heavily on the basis of this one order. After some bargaining, Mr. Mann agreed that Freshfoods would ship approximately 150,000 kilograms of mushrooms per month for 12 months and will pay $.20US per kilogram of mushrooms.
If AML decided to handle this product, it would need to add some equipment to its flatbed trailers to provide power to the refrigeration units on the containers. This is a one-time cost of nine lakhs (one lakh = $2,222US). With temperatures soaring to 50 degrees Celsius/122 degrees Fahrenheit (and the hot wind called loo—notorious for deaths associated with heat waves), for most of the long hot summer the energy costs of meeting special conditions could be prohibitive. AML expects them to total about three lakhs on an annual basis.
Mr. Singh then made inquiries to his rail carrier about 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.
This 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.
Step 1: First Year Costs
Question 1: What would the first-year costs be to AML if it purchased the 10 used 20-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
Step 2: Recouping Investment
Question 2: What would the first-year costs be to AML if it purchased five new 40-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
Step 3: Risk
Question 3: Is either of the alternatives presented in questions 1 and 2 riskier? Why?
Step 4: Supply Chain Participates
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: Sharing
Question 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 Step
Submit 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 Due Dates for Assignments & Exams in the Syllabus for due dates).

BSOP 434 Week 4 Lab Easing Ira’s Ire

Lab 4: Easing Ira’s Ire
(See “Due Dates for Assignments & Exams” in the Syllabus for due dates.)
Submit your assignment to the Dropbox located on the silver tab at the top of this page.
Ira 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?
This 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.
Step 1: PERT Chart
Question 1: Arrange the tasks shown in Exhibit 11-A in a network or PERT chart.
Step 2: Critical Path
Question 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: Risk
Question 3: Considering your answers to questions 1 and 2, what areas of activity do you think Wood should look at first, assuming she wants to reduce order-processing and delivery times? Why?
Step 4: Order Picker
Question 4: Now 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 Transportation
Question 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 Step
Submit 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

BSOP 434 Week 5 Lab Cycle Counting and Logistics Systems

Week 5: Cycle Counting and Logistics Systems – Lab
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Lab 5: Columbia Lumber Products Company
See “Due Dates for Assignments & Exams” in the Syllabus for due dates.
Submit your assignment to the Dropbox located on the silver tab at the top of this page.
The 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 was a split between those willing to relocate to Duluth and those willing to relocate to Chicago.
There were too many vice presidents (see Exhibit 14-A). Because four vice presidents (engineering, finance, human resources, and purchasing) would reach mandatory retirement age by 1997, the number of vice presidents should be reduced from nine to no more than six (plus one executive vice president).
Logistics and distribution costs were higher than industry averages. The majority of customer complaints dealt with poor deliveries. In Exhibit 14-A, a T shows where a traffic management function was located. Geographically, the traffic manager for overseas operations was located in Seattle, which was a foreign trade center for the Pacific Northwest. The Chicago sales office had a traffic manager who handled all fiberboard distribution and lumber and plywood distribution east of the Rockies. Production and purchasing shared a traffic manager who was headquartered in Portland and whose principal duty was overseeing shipments of waste products from Oregon to Minnesota. Another traffic manager in Portland, who reported to the sales vice president, was acknowledged to be the firm’s senior traffic manager and more or less coordinated the efforts of the other three. Recently, Irwin Buchanan III had been promoted to that post. He was the only one authorized to initiate action before regulatory bodies, and he also handled the negotiations with carrier rate-making bodies and with carriers. (CLPC used contract truckers and rail for most of its shipping.)
The purchasing department handled the details of fleet management, which included about a hundred autos on long-term lease for use by management and by the sales force. Several light trucks were leased for use around the plants.
CLPC also owned two small aircraft, which often were the target of questions during stockholders’ meetings. One plane was based at Portland, the other at Duluth. Each was used in its respective region for trips to sites without scheduled airline service. Both planes were under control of the production department. Other departments, especially sales, complained that the planes were being used for the benefit of the production department rather than for the benefit of the entire firm.
P in the exhibit shows two packaging engineering functions. The one under engineering was located in Portland and dealt with plywood products. The one under sales was located in Chicago and handled particle board products. The two packaging engineering functions saw their roles differently. The one in Portland was concerned mainly with safe packing and packaging of products moving between CLPC plants or from CLPC plants to customers. The Chicago packaging engineers were interested in finding new markets for particle board and lumber as packaging materials to be sold to others. W in the exhibit shows where there are company-owned warehouses. Numerous public warehouses were also used, although not continually. Block I (upper left corner) in the chart below shows locations of individuals concerned with inventory levels. All four individuals were located in Portland. F indicates where sales forecasting took place. Only sales and production devoted much staff to forecasting. Each quarter, however, the financial vice president’s office coordinated all forecasts to ensure comparability. Computer operations were under control of the engineering division. CLPC’s executive vice president determined priorities for computer access and use.
The human resources department handled employee moves, although only a few had taken place since 1980. An outside director who was familiar with current federal legislation suggested that CLPC negotiate a contract with a household goods carrier to handle all CLPC employee moves. This action would be especially significant if a major reorganization resulted in numerous employee transfers.
This 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.
Step 1: Original Organizational Chart
Question 1: Draw a new organization chart for Columbia Lumber Products Company that you feel best overcomes the directors’ criticisms of CLPC’s present (January 31, 1996) organization. Indicate the geographic location of all operations shown on the new chart. Explain why you established the organization chart the way you did.
Step 2: Organizational Chart of Reorganized Firm
Question 2: Assume that the firm should be reorganized in a manner that emphasizes sales and marketing. This would include a physical distribution system, which would support the marketing effort. Draw an organization chart that you think would accomplish this aim. Indicate the geographic location of all operations on the new chart and explain why you drew the chart as you did.
Step 3: Organizational Chart of Centralize Firm
Question 3: Assume that the firm wants to reorganize into a highly centralized form, closely managed from a single home office. Draw a new chart that takes this into account. Indicate the geographic location of all operations on the chart and explain why you organized it as you did.
Step 4: Organizational Chart of Decentralize Firm
Question 4: Assume, instead, that the firm wants to reorganize into a highly decentralized form, where many important decisions can be made out in the field. Draw up a new chart, including the geographic location of all activities. Explain why you drew it up as you did.
Step 5: Faster Third-party Firm
Question 5: Young Irwin Buchanan III, the firm’s senior traffic manager, heard rumors that the number of vice presidents was to be reduced. He felt that this would reduce his chances of ever achieving vice presidential—or presidential—status. Luckily, he had access to some money in a family trust fund. He wondered whether he should propose to form a separate, third-party firm to contract with CLPC to perform CLPC’s logistical operations. What functions should it offer to perform?
Step 6: Final Step
Submit your completed assignment to the Lab Dropbox in a MS Word document for grading


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