Part 2: The mahogany shortage issue The Sheffield Timber Company has recently informed the manager of HSF that supplies of mahogany wood were in jeopardy. There had been a serious forest fire and much of the seasoned stock had been wiped out. Sheffield Timber envisaged that there would be no more supplies of the type used by HSF for the next six months. The current stock of mahogany wood held by HSF is equal to 3,250 square meters. The amount of mahogany wood required per unit of products is equal to 10 sqm / 5 sqm / 5 sqm for wardrobes, dressing tables and chests respectively. Assignment question Provide a production schedule which would maximize profits on the stocks of mahogany wood held by HSF and identify the forecast profit figure based on this production schedule. You should assume that forecast demand from the normal customer base will be 10% higher than the last six months figures. You should also assume that the mirror section of the dressing tables will have to be produced in house, since the current supplier does not hold enough stock of mahogany wood.

Part 3: The American special order Recently, a company has approached the manager of HSF with an enquiry for fifty chests for export to America. HSF has never supplied bulk orders before and this customer is only willing to pay 70% of the normal selling price. The delivery cost for this order would amount ro 900. Assignment question Should the manager of HSF accept the American order?