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Alessandro Motors manufactures automobiles, vans, and trucks. Among the various Alessandro plants around the worid is the Thunder Bay (TB) plant. Coverings made primarily of
Alessandro Motors manufactures automobiles, vans, and trucks. Among the various Alessandro plants around the worid is the Thunder Bay (TB) plant. Coverings made primarily of vinyl and upholstery fabric are sewn at the TB plant and used to cover interior seatings and other surfaces of Alessandro products Roberto Santa is the plant manager for TB. The TB plant was the first Alessandro plant in the region. As other area plants were opened, Santa, in recognition of his managerial ability, was given resposibility for managing them. Santa functions as a regional manager, although the budget for him and his staff is charged to the TB plant Santa has just received a report indicating that Alessandro could purchase the entire annual output of TB from outside suppliers for S 35 million. Santa was astonished at the low outside price because the budget for TB's operating costs for 2001 was set at S 52 million. Santa believes that Alessandro will have to close down operations at TB in order to realize the $ 17 million in annual cost savings
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