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Comfort Inc. is a furniture company that manufactures desks and chairs for offices. They have forecasted the demand of desks and chairs for the
Comfort Inc. is a furniture company that manufactures desks and chairs for offices. They have forecasted the demand of desks and chairs for the second half of this year, and currently they are at the planning phase for production. They figured out the manufacturing plan for their chairs, however they are still struggling to determine the optimal production schedule for their desks. Each desk is made up of three main assembly parts: A, B, and C. Part C is assembled from two other parts: D and E. Figure 1 shows the hierarchy of parts and the number of each used in assembling a single desk. DESKS Qty: 1 Part A Qty: 2 Part B Qty: 1 Part C Qty: 3 Part D Qty: 1 Figure 1: Product Structure Tree Part E Qty: 2 Table 1 shows the monthly inventory cost per unit, the lead time, which is the time between when the part is ordered until it is received, the current inventory, and finally the ordering policy for each part. Notice that desks do not have inventory cost. Table 1: Parts' Requirements Part A Part B Part C Inventory Cost: 5 8 4 Part D 7 Part E 2 Lead 1 month 2 months 2 months 1 month 2 months Time: Current Inventory: 100 30 0 40 0 Minimum 500 parts (If an order is made for Ordering Policy: this part in a month, it will be for at least 500 Any Amount Any Amount Any Amount Any Amount parts)
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