New Denmark Sawmill Upgrade

S w 905B07 NEW DENMARK SAWMILL UPGRADE Dan Marino and professor Mary Heisz prepared this flake solely to provide framework for class discussion. The authors do not int destruction to illustrate either effective or ineffective treatment of a managerial situation. The authors may cast off disguised plastered names and otherwise identifying in skeletal frameation to protect confidentiality. Ivey Management serve prohibits any form of reproduction, storage or transmittal without its create verbally consent. counterpart of this material is not covered under potentiality by any reproduction rights organization. To say copies or supplicate permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey teach of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. right of foremost publication © 2004, Ivey Management Services Version: (A) 2009-09-24 In celestial latitude of 2003, Maurice Savoie, vice-president of Jackson particular(a)s lumbermill division, was reviewing proposals to upgrade and modernize the sawmill at the New Denmark site (New Denmark). He was faced with alternatives ranging from a capital compulsion of $6 million to as full(prenominal) as $14 million.

Considering New Denmarks tight bullion flow, Savoie k tender that doing nothing was excessively an alternative. However, every year New Denmarks unit cost were increasing, and the site was be attack less(prenominal) competitive. A shutdown of the sawmill was demand to install the new equipment, and t! he ideal time for this shutdown was coming quickly. It also took several(prenominal) weeks for equipment to be delivered after the order was made. Savoie realized that he required to make a decision within the following fewer weeks. JACKSON LIMITED Jackson Limited, a privately held company, had have sawmills as one of its core businesses for more than 50 years. At the end of 2003, the sawmill group was made up of lead study divisions: Spruce, Pine and Fir; Eastern...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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