This paper will discuss the issue of production decline at ABC, Inc. It will begin with identifying the problem and then continue to examine possible goals, objectives, and criteria specific to the problem at hand. Probable causes of decreased production at ABC, Inc will be identified and specific alternatives to alleviate the causes will ensue. The strengths and weaknesses of each alternative will be evaluated as to the impact they may have on Kava and ABC, Inc. A decision will derive from these alternatives based on which options will be the most manageable, and cost effective. The paper will conclude with evaluating the decision by generating a plan to assist in carrying out the decision. Then we will measure the impact of the plan to see if it has the desired results.
Kava is an island in the South Pacific that supplies ABC, Inc. with 75% of its raw materials.
Recently, Kava has experienced two successive tidal waves on 50% of their southern shores, destroying most of the marina used to fish. Boats for fishing were destroyed and their captains went down with their ships. Last month, after the tidal waves, the islands main volcano, Mt. Wannahockaloogie, erupted pouring molten lava over 200 acres of the coffee and cocoa crops. The problem is, the goods and services from Kava have decreased causing a decline in production at ABC, Inc.
STEP 2Although ABC, Inc is able to outsource temporarily to other areas in order to increase profits, the founder of the company, Chris Morales, feels a moral obligation to assist the country that gave so much of itself to ABC, Inc. The main goal at this point is to increase the necessary raw materials from Kava thus increasing overall profit of ABC, Inc. within the...