Insteel Wire Products: ABM at Andrews

Case Solution

V.G. Narayanan, Ratna Sarkar
Harvard Business School ()

In 1996 Insteel introduced an activity-based calculation system (ABC). He considers pallet nails to be his most profitable product and decides to expand the number of cells used to make pallet nails from two to four. A repeat of the 1997 ABC study shows that pallet nails have become the least profitable product.

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