The management team of a small furniture manufacturing company is under pressure to increase profitability in order to get a much-needed loan from the bank to purchase a more modern pattern-cutting machine. One proposed solution is to sell waste wood chips and shavings to a local charcoal manufacturer instead of using them to fuel space heaters for the company’s office and factory areas.

1. Define the company’s problem and reformulate the problem using the 7-step systematic principles of engineering economics.
2. Develop at least one-potential alternative for your reformulated problems in part (a).