Forecast matches up with capacity of manufacturing facility

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Question

Your second objective is to prepare a forecast for the next 12 months. It is important that your forecast matches up with the capacity of your manufacturing facility. On average the plant operates 8 hours per day 5 days a week with a two week shut down in July for annual maintenance. On average it takes 1.25 hours to make a piece of upholstered furniture. The company currently has 5 upholstering machines. A steady rate of manufacturing throughout the year is critical to the operation of the facility. Sales of upholstered furniture are seasonal with 70% of sales occurring in the winter and spring. 605 of annual sales are upholstered chairs. Sales are expected to by 7,800 units annually. Your final objective is to assure that everything you need to make the product is there when it is needed. To accomplish this you decided to use MRP. A multilevel bill of material for a basic upholstered chair is as follows.

Reference no: EM133770834

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