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You are the plant manager at Acme Plastics. You are running two shifts, a day shift and an evening shift. Before the day shift leaves each day, the workers must get an adequate supply of raw materials from the warehouse for the evening shift to use. On several occasions, they have failed to do so. By the time the evening shift gets to work, the warehouse is locked up, and it takes about three hours to get someone out to unlock it and get the production line rolling again. The two shift supervisors are at each other's throats, and you have to do something to correct the situation. What is the basic problem causing this conflict? What could you do to solve it?
What is the agency problem? What steps can be taken to solve it? Why is it important for managers and organizations to behave ethically?
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An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000 per month. Current d
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