Green Front Furniture manufactures a high-quality dining table, which is offered in both oak and walnut. The demand for the tables is 800 units for the oak table and 1500 for the walnut table. The tables are priced at $495 and $995 for the oak and walnut tables, respectively. The materials cost is $210 for the oak table and $430 for the walnut table. In addition, Green Front has the following manufacturing information for the four manufacturing processes (receiving, preparation, assembly, and finishing), showing the amount of time (in minutes) required for each table for each process, and the total minutes of time available for each process.
| Time per unit |
|
|
|
| |
Name |
Oak |
Walnut |
Available Time |
|
|
| |
Receiving |
25 |
50 |
100000 |
|
|
| |
Preparation |
80 |
120 |
250000 |
|
|
| |
Assembly |
100 |
250 |
400000 |
|
|
| |
Finishing |
60 |
40 |
120000 |
a) Which process(es), if any, are constraints for the current level of demand?
b) Given any constraints identified in part (a) above, determine the best production and sales plan for the two types of tables.
c) What is the overall contribution from the production plan you determined in part (b) above?