RES 32 case 9 Engineered Products Inc. (EPI) case (Graded A+) - use as a guide only - 30275

Solution Posted by
arsalanahmed

arsalanahmed

Rating : (80)A
Solution Detail
Price: $15.00
  • From: Business,
  • Posted on: Mon 04 Nov, 2013
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

The report should also include a summary, conclusion, and (if necessary) a list of references. Cite all the references as necessary in the body (text) of the report. Also submit a power-point presentation file

 

Instruction: Work on the following case. You can solve manually or use Excel. Submit your solution in a report form. The report should include a title page including names of the students, course number, instructor’s name, and peer-evaluation (contribution and effort) of each member in the group. The report should also include a summary, conclusion, and (if necessary) a list of references. Cite all the references as necessary in the body (text) of the report. Also submit a power-point presentation file.

 

Case: Engineered Products Inc. (EPI) is a conglomerate with both manufacturing and service-basedbusinesses. One of EPI’s larger manufacturing plants has been asked to increase its recyclingefforts or face a major increase in its disposal fees. EPI prides itself on being a goodcorporate citizen and has committed to taking any and all feasible actions to reduce thevolume and weight of material it sends to the local landfill. The local landfill plans toincrease disposal fees by $5 per ton. It is offering to rebate $5 for each ton less than thecurrent 12-month average that the plant sends to the landfill. The plant does not foresee anychanges in the current levels of waste generation due to volume or product changes.

 

Currently, the plant averages sending two containers per day to the landfill. Thecontainers average 10 tons of waste when loaded. The landfill charges $40 per ton to receivethe waste. The waste hauler charges $80 per load (one container) to transport the waste. Thethree waste containers are rented for $5 per container per day.

 

Currently, cardboard, if collected and bundled for shipment, can be sold for $95 per ton.The plant estimates that it sends 2 tons of cardboard a day to the landfill. To collect thecardboard will require one janitorial associate for 3 hours per day at a cost of $18.50 per hour.The baling equipment will cost $22,000 installed, $45 per week to operate, $4500 per year tomaintain, and last 12 years. The equipment will have a salvage value of $5000.

 

Currently, 25,000 wooden pallets per year are scrapped each year because they aredamaged or because they are not of the standard size used by the plant. The plant hasbudgeted $12,000 for a pallet shredder to chip the pallets as they go into the waste containersto reduce their volume and allow the average weight per container to increase to 11 tons. Theshredder has no salvage value at the end of its 6-year useful life. The operating andmaintenance cost (not including the operator, a janitorial associate) is $3000 per year. Thepallets average 13 pounds each.

 

A pallet recycler has offered to purchase pallets, which are of certain sizes and in goodcondition. The pallets that are in these sizes and in acceptable condition amount to half thescrapped pallets. The pallet recycler is offering to pay $1.00 per pallet. To sort the acceptablesizes from the scrap pallets will require three hours of labor per day. This job can also bedone by a janitorial associate.

 

Purchasing has identified a company that will pick up the damaged and unusable palletsand process them into wood chips, which this company then sells. The cost of this service is$1.25 per pallet.

 

The plant works 5 days a week, 50 weeks a year. The minimum attractive rate of return is15%.

 

What do you recommend the plant do?

Solution Description

A+++++++++

Attachments
Book1.xlsx
Book1.xlsx
project.pptx
project.pptx
Title Page.docx
Title Page.docx