13. Equipment Purchase and Replacement Strategy at the Fayette China Company
Matthew J. Drake, Duquesne University
Robert Ross is the plant manager at the Fayette China Company’s facility in Charleroi, Pennsylvania. Among his many responsibilities is the decision on when and how to replace the capital equipment used to manufacture the company’s iconic Shangri La line of dinnerware products. Much of the equipment in the facility is used heavily, and as a result, it must be replaced at a minimum approximately every ten years. Sometimes, however, it is replaced far more frequently than that if the costs of doing so can be justified.
One of the kilns in the facility has just come up for replacement, and the Fayette China Company’s executive board ...
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