Great Lake Essays

2162 WordsMar 26, 20139 Pages
GREAT LAKES PIPE & TUBE, INC. “If we do decide to produce the 10- and 12-inch pipe internally, it could solve our overstaffing problem,” Mark Rubin, owner of Great Lakes Pipe & Tube, Inc. (GLPT), remarked to Vinny Patricko, the plant manager. “I’m reluctant to lay anyone off or even cut back hours. It’s not good business and it’s not the right thing to do if it can be at all avoided.” THE FIRM Mark Rubin had no intentions of starting his own firm in 1972. Since graduating from college in 1964, he had worked for ML Pipe, a company based in Youngstown, Ohio. In January 1972, the company decided to relocate to New Jersey, and Rubin went also. Rubin and his wife were quite unhappy in Virginia, mainly because they felt…show more content…
He thinks this could continue, given not only the state of the economy but also the increase in industry competition. In its entire 29-year history, the firm has never been forced to even cut any worker’s hours, let alone lay off someone. And Rubin has decided that he won’t start now. RUBIN’S ESTIMATES Rubin can’t be certain, of course, what future sales of the 10-inch and 12-inch pipe will be. He finds it helpful to think in terms of scenarios, and he has devised a set of estimates shown in Exhibit 1. In addition, two salespeople complained that accounts were lost when some distributors learned that GLPT does not produce 10-inch and 12-inch pipe internally. Apparently, these distributors were concerned that GLPT would not be able to fill orders as quickly as they would like. As a result, these salesmen argued, the entire account was lost and not just the orders for 10-inch and 12-inch pipe. Rubin is unsure what to make of this “lost order” argument. If the sales personnel are correct, then GLPT could nearly double the figures shown in Exhibit 1 by producing the 10-inch and 12-inch pipe in-house. While he can believe that some sales have been lost, Rubin finds it hard to believe that the volume is anywhere near what the salespeople claim. For the time being, he decides to ignore the possibility that orders have been lost. He wants time to investigate the claims of the sales personnel who, he believes, have a
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