Space Age Furniture Company

3097 words 13 pages
Space Age Furniture Company
Operations Management BUS 644
Dr. O'Leary
June 08, 2013

Space Age Furniture Company

The Space Age Furniture Company manufactures tables and cabinets to hold microwave ovens and portable televisions. In this paper, I will explore ways that the company can be more efficient in the time to manufacture these parts and the overtime hours involved. To accomplish this, I will look at the type of operation, trade-off between the costs of overtime and inventory, ways that management can track job status and offer any suggestions regarding these issues.
Most of the products follow the same production and assembly operations. However, two of these product – the Saturn microwave stand and the Gemini TV stand –
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In addition, the master schedule must not place more capacity demands on any machine or work center than can reasonably be met by existing capacity. Due to the difficulties involved in developing a good master production schedule, the job is usually done by experienced individuals called master schedulers (Vonderembse & White, 2013, p. 261).
The plan must take into account the various ways a firm can cope with demand fluctuations as well as the cost associated with them. Typically a firm can cope with demand fluctuations by:
(a) Changing the size of the work force by hiring and firing, thus allowing changes in the production rate. Excessive use of hiring and firing may limited by union regulations and may create severe labor problems.
(b) Varying the production rate by introducing overtime and/or idle time or outside subcontracting.
(c) Accumulating seasonal inventories. The tradeoff between the cost incurred in changing production rates and holding seasonal inventories is the basic question to be resolved in most practical situations.
(d) Planning backorders (Gallego, 2001, p. 1). Since there will be a shortage of subassemblies for the current orders, this will mean that Ed Szewczak will need to work overtime again to cover the current orders. This brings up the question of whether the production team at Space Age should consider carrying some inventory of the subassemblies. Some companies will carry is subassembly inventory. This type of inventory is


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