simulation page

Product Overview

Comfort, Inc., the largest franchiser of Menham mattresses, operates seven manufacturing plants on the East Coast. The plants operate independently but can call on corporate staff support. The manufacturing process follows a close-production-rate strategy and thus is susceptible to labor problems. The two Pennsylvania plants have incurred high manufacturing expenses over the past few years. In order to reduce costs, the board is considering consolidating these plants into one plant in a new location. Sales are expected to increase by 20% because of a contract that Comfort has made with McAdams, a large department store. The student must determine whether management should consolidate the two plants.