[LO 13-2] 13-45 Theory of Constraints; Strategy Colton Furniture Co. is a small but fast-growing manufacturer...

  

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[LO 13-2] 13-45 Theory of Constraints; Strategy Colton Furniture Co. is a small but fast-growing manufacturer of living room furniture. Its two principal products are end tables and sofas. The flow diagram for the manufacturing at Colton follows. Colton's manufacturing involves five processes: cutting the lumber, cutting the fabric, sanding, staining, and assembly. One employee cuts fabric and two do the staining. These are relatively skilled workers who could be replaced only with some difficulty. Two workers cut the lumber, and two others perform the sanding operation. There is some skill to these operations, but these skills are less critical than those for staining and fabric cutting. Assembly requires the lowest skill level, and there is currently a total of 175 hours of working time per week provided by a single full-time employee plus some part-timers. The other employees work a 40-hour week, with 5 hours off for breaks, training, and personal time. Assume a 4-week month and that, by prior agreement, none of the employees can be switched from one task to another. The current demand for Colton's products and sales prices are as follows, although Colton expects demand to increase significantly in the coming months if it is able to successfully negotiate an order from a motel chain. Price Current demand (units per month) End Tables Sofas $250 $450 400 150 Lumber Price = $100 Cut 30 minutes Assemble 45 minutes Sand 30 minutes Stain 48 minutes End Table Lumber Price = $75 Cut 12 minutes Sand 30 minutes Fabric Price = $175 Cut and Trim 48 minutes Stain 18 minutes Assemble 90 minutes Sofa [LO 13-2] 13-45 Theory of Constraints; Strategy Colton Furniture Co. is a small but fast-growing manufacturer of living room furniture. Its two principal products are end tables and sofas. The flow diagram for the manufacturing at Colton follows. Colton's manufacturing involves five processes: cutting the lumber, cutting the fabric, sanding, staining, and assembly. One employee cuts fabric and two do the staining. These are relatively skilled workers who could be replaced only with some difficulty. Two workers cut the lumber, and two others perform the sanding operation. There is some skill to these operations, but these skills are less critical than those for staining and fabric cutting. Assembly requires the lowest skill level, and there is currently a total of 175 hours of working time per week provided by a single full-time employee plus some part-timers. The other employees work a 40-hour week, with 5 hours off for breaks, training, and personal time. Assume a 4-week month and that, by prior agreement, none of the employees can be switched from one task to another. The current demand for Colton's products and sales prices are as follows, although Colton expects demand to increase significantly in the coming months if it is able to successfully negotiate an order from a motel chain. Price Current demand (units per month) End Tables Sofas $250 $450 400 150 Lumber Price = $100 Cut 30 minutes Assemble 45 minutes Sand 30 minutes Stain 48 minutes End Table Lumber Price = $75 Cut 12 minutes Sand 30 minutes Fabric Price = $175 Cut and Trim 48 minutes Stain 18 minutes Assemble 90 minutes Sofa

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Part One Identify the Constraint Total Time required for each ... View the full answer