For more than 75 years, New England Foundry, Inc., has manufactured wood stoves for home use. In

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For more than 75 years, New England Foundry, Inc., has manufactured wood stoves for home use. In recent years, with increasing energy prices, George Mathison, president of New England Foundry, has seen sales triple. This dramatic increase in sales has made it even more difficult for George to maintain quality in all the wood stoves and related products. Unlike other companies manufacturing wood stoves, New England Foundry is only in the business of making stoves and stove-related products. Their major products are the Warmglo I, the Warmglo II, the Warmglo III, and the Warmglo IV. The Warmglo I is the smallest wood stove, with a heat output of 30,000 Btu, and the Warmglo IV is the largest, with a heat output of 60,000 Btu. In addition, New England Foundry, Inc., produces a large array of products that have been designed to be used with one of their four stoves, including warming shelves, surface thermometers, stovepipes, adaptors, stove gloves, trivets, mitten racks, andirons, chimneys, and heat shields. New England Foundry also publishes a newsletter and several paperback books on stove installation, stove operation, stove maintenance, and wood sources. It is George's belief that its wide assortment of products was a major contributor to the sales increases.


1. How much time would the new layout save?

2. If maintenance personnel were paid $9.50 per hour and molding personnel were paid $11.75 per hour, how much could be saved per hour with the new factory layout?


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Quantitative Analysis For Management

ISBN: 162

11th Edition

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna

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