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:

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.
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 bottle neck 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?

Transcribed Image Text:

Chair Leg assembly Back assembly Seat Rails Legs Top Spindles On Hand Weeks of Lead Time Chairs Leg assembly Back assembly Seat Rails Legs Top Spindles 100 50 25 40 100 150 30 80