Grover Cotton Mills in Atlanta is a large producer of denim fabric. The company has long recog- nized that its handling and storing of baled denim is inefficient, but has found the problem difficult to solve. The large steel-strapped bales of denim are hauled from the end of the production line to the finished goods warehouse by means of two-wheeled hand trucks. Because of their weight, the bales are usually placed on the floor or, at best, stacked two high. This has resulted in little usage of the vat in the warehouse and excessive warehousing costs. Grover's warehouse is a long (300-foot), narrow (60-foot) building with an arched-truss roof. The height is 22 feet in the center and about 12 feet along the walls. All material feeds into the warehouse from one side and out one end. An increase in production has led to increased need for warehouse space, but the gen- Eral manager refuses to authorize the building or renting of additional space. Her containment is that adequate space is available if used efficiently. She has requested that the industrial engine neering department analyze the warehouse situation and make recommendations for increasing its utilization.

QUESTIONS

What recommendations should be made for improving the use of the warehouse? two.

Can manual handling be reduced? How?

Should new equipment be purchased? why?

If new equipment is purchased, what is a reasonable time period in which to repay the investment?