The Old Hickory Furniture Company manufactures chairs on the basis of the BOM shown below. At the present time, the inventories of parts and lead times are as follows: Chairs Leg assembly Back assembly Seat Rails Legs Top Spindles Chair Leg assembly Rails Back assembly Legs Top On Hand 100 50 25 40 100 150 30 80 Seat Spindles Weeks of Lead Time 1 2 1 3 1 1 2 2 The firm would like to produce 600 chairs in week 5 and 300 chairs in week 6. a. Develop a materials plan for all the parts using L4L. b. What actions should be taken now? c. Assume it takes one hour to assemble backs, one hour to assemble legs, and two hours to finish completed chairs. Total assembly time for all three types of assembly is limited to 1000 hours per week. Will this capacity constraint cause a bottleneck in assembly? If it does, what can be done?

The Old Hickory Furniture Company manufactures chairs on the basis of the BOM shown below. At the present time, the inventories of parts and lead times are as follows: Chairs Leg assembly Back assembly Seat Rails Legs Top Spindles Chair Leg assembly Rails Back assembly Legs Top On Hand 100 50 25 40 100 150 30 80 Seat Spindles Weeks of Lead Time 1 2 1 3 1 1 2 2 The firm would like to produce 600 chairs in week 5 and 300 chairs in week 6. a. Develop a materials plan for all the parts using L4L. b. What actions should be taken now? c. Assume it takes one hour to assemble backs, one hour to assemble legs, and two hours to finish completed chairs. Total assembly time for all three types of assembly is limited to 1000 hours per week. Will this capacity constraint cause a bottleneck in assembly? If it does, what can be done?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. The Old Hickory Furniture Company manufactures chairs on the basis of the BOM shown below.
At the present time, the inventories of parts and lead times are as follows:
Chairs
Leg assembly
Back assembly
Seat
Rails
Legs
Top
Spindles
Chair
Leg
assembly
Rails
Back
assembly
Legs Top
(4)
On Hand
100
50
25
40
100
150
30
80
Seat
Spindles
Weeks of Lead Time
1
2
1
3
1
1
2
2
The firm would like to produce 600 chairs in week 5 and 300 chairs in week 6.
a. Develop a materials plan for all the parts using L4L.
b. What actions should be taken now?
c. Assume it takes one hour to assemble backs, one hour to assemble legs, and two hours to finish
completed chairs. Total assembly time for all three types of assembly is limited to 1000 hours
per week. Will this capacity constraint cause a bottleneck in assembly? If it does, what can be
done?
d. What is the effect of changing the master schedule to 300 chairs in week 5 and 400 chairs in
week 6?

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