The chairs have two categories of parts. The first category is all of the 8 types of parts that are made of composite wood shown in the diagram (parts A, B, C, D, E, F, G, H) . These parts are cut in the manufacturing facility out of large sheets that are ordered from their supplier. The large sheets are 5 meters by 5 meters (25 m²) and cost $1,000 each.

Part Y

Part X

Part Z

The second category is all of the hardware that is used. To keep the design of the chairs simple only one type of nut, washer, and bolt are used (parts X, Y, Z). These are ordered from another supplier.

Each complete chair is made up of one Seat, one Seat Backing, and two Leg.

The Seat is made of 2-A, 12-B. Each part B needs hardware of 2-X, 2-Y, and 4-Z.

The Seat Backing is made of 2-C, 2-D, 2-E, 4-F. Parts C, D, and E each need hardware of 4-X, 4-Y, and 8-Z.

The Leg is made up of 2-F, 2-G, 2-H. Each part G needs hardware of 6-X, 6-Y, and 12-Z. Each part H needs hardware of 2-X, 2-Y, and 4-Z.

The table below includes information on the amount of composite wood (including waste) per part and the cost per hardware part from current suppliers. Mr. White has asked you to fill in all missing information.

Part Name	Composite Wood Per Part (m2)	# of Part Used in 1 Chair	Total Amount of Composite Used in 1 Chair (m2)
A	0.10	5	0.50
B	0.03	10	0.30
C	0.05
D	0.05
E	0.05
F	0.03
G	0.05
H	0.05
Total Amount of Composite Used Per Chair (m2):
Total Cost of Composite Used Per Chair:
Part Name	# of Part Used in 1 Chair	Cost Per Part	Total Cost Per Chair
X		$0.34
Y		$0.09
Z		$0.06
Total Cost of Hardware Used Per Chair:
Total Cost of Materials Per Chair:

Mr. White has supplied you with the following information and has asked you to determine what the optimal order quantities are for the composite wood and the hardware:

Annual Demand for Chairs	25,000
Annual Requirement of Sheets (Total #)
Cost Per Order (Composite)	$375
Annual Holding Costs Per Sheet (Composite)	$200
Optimal Order Quantity (Composite)
Annual Requirement of Hardware (Total #)
Cost Per Order (Hardware)	$100
Annual Holding Costs Per Piece (Hardware)	$0.04
Optimal Order Quantity (Hardware)

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