Shortly after the Civil War, Charles P. McWane, a millwright who had been taught the trade by his father, opened a shop in Wytheville to make plows and other farm implements. Charles taught his son Henry the trade, and when Henry was about twenty, the two men formed a partnership called C. Henry did the bookkeeping and ran the office for the business, which had ten employees.
The two plants, Lynchburg and Archer Creek, can use all of their byproduct in the production of subsequent castings.
A third plant, Radford, makes cast-iron pipes. Since iron return used in the pipe plant substitutes for high-cost pig iron, it appears that a transfer could be worthwhile, because in the castings plants, the iron return substitutes for a lower-cost mix of pig iron and steel scrap.
The central issue in the case then is this: Should ductile iron return be transferred from the Lynchburg and Archer Creek castings plants to the Radford pipe plant? The economic analysis shows there is a substantial savings to the company if the iron return is transferred.
The question then becomes, at what price? Related to this question are a number of other issues: At present, 3, tons of ductile iron returns are being transferred from Lynchburg to Radford because the pieces are too large to be economically remelted at Lynchburg.
The only cost Radford pays is freight. This is over half the potential 6, tons of iron return that it is feasible to transfer. An issue to consider is whether this iron return, which cannot be used at Lynchburg, should have the same transfer price as the iron return Lynchburg can use.
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Learn about the Board of Directors, Executive Committees and CEO compensation in this industry. Lynchburg Foundry: The Ductile Dilemma Case Solution,Lynchburg Foundry: The Ductile Dilemma Case Analysis, Lynchburg Foundry: The Ductile Dilemma Case Study Solution, The two plants produce plastic castings back iron as a byproduct of the manufacturing process.
Lynchburg Foundry and Machine Works (; renamed in as Glamorgan Pipe & Foundry; today known as Griffin Pipe) Lynchburg Cotton Mill () Craddock-Terry Shoe Co. (; which became Lynchburg's largest industry and the largest shoe manufacturer in the south).
The Lynchburg Foundry Company once employed thousands of workers in Central Virginia. Lynchburg Foundry Company was founded in in Lynchburg, Virginia, and spent its first several years consolidating stock and building capital.
In it . Foundry timeline • Lynchburg Plow Company chartered with capital of $25, • Lynchburg Foundry produces pipes and fittings for Panama Canal.