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Case Study on Masterton Carpet Mills Recommendation: The recommendation suggested to Masterton Carpet Mills, Inc., after a review of quantitative and qualitative information as well as directives given is to establish their own distribution centers or wholesale operations focusing on residential business in an effort to maximize profits. This recommendation would allow Masterton Carpet Mills, Inc. to retain the $13.5 million normally spent in the wholesale channel to help finance this endeavor from the company¡¦s internal funds as is the company policy. This alternative would also afford Masterton Carpet Mills, Inc. more stability due to the lack of intermediary conflict or instability within the external environment. Problem Statement: Given recent developments within the floorcovering industry, Masterton Carpet Mills, Inc., a privately held manufacturer of medium to high priced carpet, is considering the possibility of establishing their own distribution centers or wholesale operations focusing on residential business in an effort to...

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