WGP CHEMICAL COMPANY CASE STUDY 1. What is the total distribution cost for W-G-P Chemical Company? What is the cost per pound‚ cubic foot‚ case‚ line‚ and order? How can these measures contribute to the distribution review process? In order to calculate the total distribution cost‚ carrying cost must be calculated. Inventory carrying cost rate was given as 18%. The formula is Annual carrying cost=average inventory level * carrying cost rate Average inventory was given in table 4 as $90 million
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Whirland Chemical Company There are a number of factors with Whirland Chemical Company that raise concern and increase the audit risk of this company. We will go over the major concerns one by one‚ and then determine the level of audit risk we are willing to accept on this engagement. * a) b) * First of all‚ we are auditing Whirland for the first time. Because this is the first time we are auditing Whirland‚ a lot of research has to be done on the operations of the company. We need
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Introduction: Ovania Chemical Corporation is a specialty chemicals producer. Its core product is polyethylene terephthalate (PET) thermoplastic resins‚ which are used mainly to make containers and packages for bottled water‚ soft drinks‚ foods‚ and pharmaceuticals. Their main plant is located in Steubenville‚ Ohio. Though smaller than other chemical producers that produces globally‚ it has competed successfully in its niche of the US specialty chemical business. Recently advances in technology have
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I. Organizational Decentralization Rationale of Decentralization The term decentralization is often used in business environments and can be defined as the organizational severance and division of power‚ capital‚ and technical procedures and control into multiple units of the business.1 Decentralized corporations make it possible for managers to control without ownership. 4 In decentralized organizations‚ the breakdown is that the president of each unit of a business is on his or her own management-wise
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The Grayson Chemical Company I. Problems A. Macro 1. Grayson has become stagnant‚ failed to change‚ and is no longer competitive. 2. The current people at Grayson are not acceptable to change. 3. There is a culture of doing things by the book. B. Micro 1. Incompetent managers promoted. 2. Board does not have a consensus of opinion. II. Causes 1. Grayson has not been proactive with its environment. 2. Corporate culture is very resistant to change. 3. Board does not speak with one
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Delegation and decentralization Delegation of Authority Delegation is the process by which authority passes from one organizational level to another. But for delegation of authority‚ organizations would remain forever small. Delegation is the only solution to cope with the increasing work load of managers as the organization grows. Because of the-constraints of time and ability‚ a manager cannot perform all the tasks himself. Therefore‚ he delegates certain of the tasks to the subordinate and
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Advantages and Disadvantages of Decentralization In an organization‚ centralized way of making a decision entails less autonomy to everyone except the central leadership. In contrast‚ decentralization involves delegation of responsibility and the associated decision-making powers across various levels in the organization. Let us discover the pros and cons of this concept. A central command structure derives from an autocratic style of management. Autocracy is not necessarily an intention and could
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Questions 1: Explain what are the differences between the “Centralization” and “Decentralization”. Below is the differences between the “Centralization” and “Decentralization”: |Centralizaion |Decentralization | |Centralization is the process by which the activities of an |Decentralization is the process of dispersing decision making | |organization‚ particularly those regarding decision
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English Department First Draft: Decentralization in Lebanon Decentralization in Lebanon In the twenty first century or in other words‚ the century we are living in‚ is full of modern political thoughts and what is related to them from public sector reforms. There are so many political systems that are followed every where. These political systems can best be summarized by two controversial systems. These two systems are the Centralized and the Decentralized systems. In Lebanon we
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Case #2: W-G-P Chemical Company John White‚ vice president of distribution for W-G-P Chemical Company‚ was preparing for the annual strategy review session conducted by the firm’s executive committee. He was charged with the task of evaluating his firm’s logistics costs and customer service capability for his firm’s packaged dry and liquid agricultural chemicals. W-G-P Distribution Systems Figure 1 outlines the existing logistics system for W-G-P Chemical Company. Four types of facilities:
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