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Fabulous Furniture Company produces a variety of furniture for the home. One of the plants produces two products: the desk and the table. The demand
Fabulous Furniture Company produces a variety of furniture for the home. One of the plants produces two products: the desk and the table. The demand for the desk is 400 units and the demand for the table is 150 units. The desk is priced at $300 and the table is priced at $500. The materials cost is $150 for the desk and $325 for the table. In addition, the company has the following information for the four manufacturing processes (cutting lumber, sanding, assembly, and staining) showing the amount of time (in minutes) required for each printer for each process, and the total minutes of time available for each process. Time Required/unit Time Required/unit Time Desk Table Available Cutting 15,000 Sanding 30 16,800 Assembly 42,000 Staining 18,000 Name 20 30 30 75 50 60 30 Required: 1. Which process(es), if any, are constraints for the current level of demand? 2. Given any constraints identified in part (1) above, determine the best production and sales plan for the two types of tables. This will be accomplished by performing all three steps based upon the structure below: (1) Identify the constraint (2) Identify the Most Profitable Product (3)identify the Most Profitable Product Mix Answer to Part One: Slack Time Answer to Part Two: Step One: Identify the Constraint - Total Time Required for Each Activity for Given Demand Time Desk Table Total Time Available Cutting Sanding Assembly Staining Step Two: Identify the Most Profitable Product Desk Table Price Materials Cost Throughput Margin Constraint Time Throughput/Time Step Three: Identify the Most Profitable Product Mix Desk requirement Table requirement Desk Table Total Units Throughput/unit Total Throughput
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