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You've been given the critical assignment of selecting the site for your company's new plant. After months of negotiations with landowners, numerous cost calculations, and investments in ecological, social, and community impact studies, you are about to recommend building the new plant on the Lansing River site. Now, just 15 minutes before your big presentation to top management, you discover a possible mistake in your calculations: site purchase costs appear to be more than you calculated—nearly 10% over budget. You don't have time to recheck all your figures, so you're tempted to just go ahead with your recommendation and ignore any discrepancies. You're worried that management won't approve the purchase if you can't present a clear, unqualified solution. You also know that many projects run over their original estimates, so you can probably work the extra cost into the budget later. On your way to the meeting room, you make your final decision. In a few paragraphs, explain the decision you made.

Operation Management, Management Studies

  • Category:- Operation Management
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