Fancy Furniture

Fancy Furniture produces customized furniture for French end consumers. Their best selling product is a sideboard that customers can customize with different woods, colors, door handles etc.

Beatrice, Cordell, and Royce have been put in charge of preparing for the Chief Operation Officer how many sideboards should be produced in the next month to meet the demand.

Fancy Furniture operates three production facilities across the world - one in China (C1), one in Turkey (T1) and one in France (F). In each facility they have a dedicated production line, that is, a production line that can only be used to produce sideboards.

Fancy Furniture serves the demand at warehouses in France (WH1 and WH2). The profit when selling a sideboard produced on one of the production lines differs at each warehouse because of different labor, raw material, transportation, and warehouse overhead cost. Profits for products produced at the dedicated production lines C1, T1, and F and that are sold at WH1 or WH2 are given in the table below. The dedicated production lines must always be used.

In addition to using the dedicated production lines, Fancy Furniture has the option to repurpose a second production line in China (C2) and in Turkey (T2) at an additional cost. The profit associated with products coming from these production lines are also given in the table below.