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Wordcount: 741
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Birch Paper Company
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Introduction:
Birch Paper Company (BPC) is a five-division pulp and paper corporation that produces white and kraft paper as well as paperboard. BPC has four production divisions, including Northern, Southern and Thompson, and a timberland division. Each division is considered a profit center, which operates autonomously. The managers of each division control both the revenue and costs for their divisions. The managers’ performance is based on divisional profits and returns on investment. Each division is free to do business with any supplier. Furthermore, the division managers can also purchase raw materials from other divisions. The internal suppliers are expected to meet the current market prices for the raw materials.
Problem:
BPC
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