Central Insurance Canada
(5 pages of text)
In response to a recent incident the supervisor of administration services was trying to decide how best to prevent the company from sending out mail with insufficient postage. The case describes how the company determines how much postage is required and the process Canada Post uses in dealing with mail with insufficient postage. The supervisor is examining two options. One involves a software solution to calculate envelope weight, the other involves mechanically weighing each envelope.
Although at first glance, the case appears to involve a straight-forward purchasing decision and may be used for this purpose, it also has several other camouflaged issues which can be addressed by students. For this reason, the case is appropriate for students at both introductory and intermediate levels. The teaching objective at the introductory level is for students to conduct both a qualitative and quantitative analysis of the equipment alternatives. This case is a good introductory case to use with people who are inexperienced with cases. Its length allows students to extract information easily and prepare for class. For students with prior exposure to operations, the objective is to reveal how operations both inside and outside an organization's control can affect customer service.
Finance and Insurance
Canada, Large, 1997
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