Reference no: EM13480156

Hurst Mats manufactures custom replacement floor mats for automobiles. The floor mats are made of spun nylon on highly automated, expensive machinery. Hurst manufactures two mat styles: Plush and Deluxe. Hurst's unionized work force makes it difficult for Hurst to compete on price. So far it has been able to successfully compete on quality, innovative design, and delivery schedule. However, the leaders of Hurst's union are aggressive and are seeking additional work-related job guarantees. Hurst management would like to reduce its dependence on unionized labor. Hurst's manufacturing process is overhead-driven; most of the overhead arises from the common machinery that produces the Plush and Deluxe floor mats. Nonunionized engineers and technicians maintain the equipment. Expensive lubricants and filters are required to operate the machines, which require large amounts of electricity and natural gas. Each mat style is produced in batches that consist of 10 mats per batch. Plush and Deluxe do not put differential demands on the equipment other