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Custom Transportation, located in Elgin, Illinois, is a company that specializes in the delivery of medical equipment and supplies to hospitals, clinics, and medical supply companies in the Midwest. The majority of employees at Custom Transportation are sales representatives, warehouse staff, and truck drivers. Currently, most of these workers are over age 40. As a result of ongoing expansion, the company will grow from 225 employees to more than 500 employees in the next three years. Several government contracts have already been signed, and more are anticipated. The company has recently hired you as the warehouse manager. Part of your job is to oversee all safety programs for the company. These duties had been handled primarily informally by the chief financial officer (CFO) prior to your coming onboard. On your first day, the CFO calls you in and gives you the following directives and information: Safety in the warehouse is becoming a real issue. The accident rate has tripled since last year. Something has to be done. Absenteeism has increased, especially on Fridays and Mondays. The company is spending 25% of its payroll costs on workers' compensation claims. Many of the claims are related to cumulative trauma disorders. You need to get rid of an employee in the warehouse who is reported to have AIDS. Answer the following questions by applying the concepts learned in Chapter 12. Also, conduct literature reviews on the subject of discussion and use to support your case study answers: How would you respond to each of the directives from the CFO? What steps would you take to instill a culture of safety in this warehouse? Do you think a wellness program makes sense for this company? Provide support for your answer. What do you think will be the biggest challenge in increasing safety and health at this facility? How will you address the issue of the employee with AIDS?

Operation Management, Management Studies

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