Northwest was a major producer of newsprint, with pulpmills in the Pacific Northwest and Canada, from which they supplied various North American markets. The assistant controller was reviewing which mill supplied which market, in an attempt to find some opportunities for cost savings, and planned to develop and use a model to investigate both the immediate newsprint allocation problem and also some longer-term "strategic" issues. (A Microsoft Excel model is available for use with this case, product 7A98E035.) The supplement, Northwest Newsprint, Inc. (B), product # 9B09E003 addresses the ability of price changes to mitigate supply chain issues and improve supply chain profitability.
