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The plant manager of Hammond Manufacturing''s Guelph, Ontario transformer plant was concerned about problems with the delivery of enclosures from a sister plant ten kilometres away. These problems reduced the company''s ability to compete for business by delaying production and shipments to customers. Both plant managers wanted to reduce not only the frequency of late deliveries, stockouts, and backorders, but also the level of frustration between their two plants. Students have to identify the source of these problems and propose a reasonable course of action to deal with them.