Question
The demand for the tables is 800 units for the Oak Table and 1,500 for the Walnut Table. High Point doesn't expect demand for either product to be greater than the 800 Oak Tables or the 1,500 Walnut
Tables
The sales price for the Oak Table is $495 as well as the Walnut Table is priced at $995. The materials cost is $210 for the Oak Table as well as $430 for the Walnut Table. The subsequent manufacturing information is for High Point's four manufacturing processes- receiving, preparation, assembly and finishing. The table displays the amount of time (in minutes) needed to complete each step in the manufacturing process for each table product. The last column shows High Point's total time accessible for each process or the available capacity for each step of the manufacturing process
Process Step Time Needed Oak Table / Unit (minutes) Capacity
Total Time
Walnut Table Available
Receiving 25 50 100,000
Preparation 80 120 250,000
Assembly 100 250 400,000
Finishing 60 40 120,000
Required- Complete each of the following questions. Obviously show supporting calculations for each answer
1. Assumed the demand for 800 Oak Tables, what is the manufacturing time per processing step as well as in total to manufacture 800 Oak Tables?
2. Specified the demand for 1,500 Walnut Tables what is the manufacturing time per processing step and in total to manufacture 1,500 Walnut Tables?
3. What manufacturing step is a restriction for the current demand?
4. Compute the throughput margin for the a) Oak Tables and b) Walnut Tables
5. Specified the constraint identified in step 3. Which product is more gainful to produce?
6. with the maximum demand of 800 Oak Tables as well as 1,500 Walnut Tables and High Point's Capacity constraint (Total Time Available), what is the best production / sales mix for the two types of tables