Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 3

Some of the electric generating plants of the Tennessee Valley Authority are powered by coal. Coal is purchased by a separate procurement division and is transferred to the plants for use. Plant managers often complain that the coal is below grade and causes problems with plant maintenance and efficiency. What do you think is causing this problem What changes would you make to help correct this problem