BSOP 434 Massive Success / snaptutorial.com

BSOP 434 Week 1 Assignment
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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?X
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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.
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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?
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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.
Scenario/Summary
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.
Deliverables
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.
L A B S T E P S
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).
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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?
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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?
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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.)
top of this page.
Scenario/Summary
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?
Deliverables

L A B S T E P S
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
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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?
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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.
top of this page.
Scenario/Summary
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.
SEE LAB DISCUSSION THREAD FOR A COPY OF THE Exhibit 14-
A
Deliverables
L A B S T E P S
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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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.
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CHAPTER 10:
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?
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