TB ES Qu. 13-94 High Point Furniture manufactures a ...

High Point Furniture manufactures a high-quality dining table, which is offered in both oak and walnut. The demand for the tables is 800 units for the oak table and 1500 for the walnut table. The tables are priced at $495 and $995 for the oak and walnut tables, respectively. The materials cost is $210 for the oak table and $430 for the walnut table. In addition, High Point has the following manufacturing information for the four manufacturing processes (receiving, preparation, assembly, and finishing), showing the amount of time (in minutes) required for each table for each process, and the total minutes of time available for each process.

	Time Required/unit				Time
Name	Oak		Walnut		Available
Receiving	25		50		100,000
Preparation	80		120		250,000
Assembly	100		250		400,000
Finishing	60		40		120,000

Required: 1. Which process(es), if any, are constraints (bottlenecks)for the current level of demand?

2. Referring back to High Point Furniture, given any constraints identified in part (1) above, determine the best production and sales plan (product mix) for the two types of tables.

3. Referring back to High Point Furniure, what is the overall contribution from the production plan (product mix) you determined in part (2) above?