LohaniJoshiShoucheCase1 2 
ISE 589-003
CASE STUDY 1
CHAIRCRAFT CORPORATION
Parul Joshi
Surabhi Shouche
Tanmay Lohani
October 17th, 2014
Contents
1. Chaircraft Corporation
2. Manufacturing Operations
2.1 Lumber Preparation
2.2 Frame Parts Production
2.3 Assembly
3. Production Scheduling
4. Analysis and Recommendations
4.1 Lumber Inventory
4.2 Variation in Material Flow
4.3 Piece wise Rate
4.4 Lot Sizing: EOQ VS SOQ
4.5 Planning Time Cycle
4.6 Finished Goods Inventory
5. Conclusions
6. References
7. Appendices
1. Chaircraft Corporation
The Chaircraft Corporation was located in a small southern community. It was a manufacturer of upholstered chairs, platform rockers, and recliners. It sold its products nationwide through a strong dealership network of 10,000 dealers. It clocked annual sales of $60 Million during fiscal year 1988-1989. In the year 1988, it employed 700 factory workers.
2. Manufacturing Operations
Chaircraft manufactured upholstered chairs from raw lumber, metal springs, cotton, fabric, and other materials. Chaircraft was an integrated manufacturer. An upholstered chair consists of 3 main components: (1) the frame; (2) upholstery; and (3) cover fabric.
Three main processes were crucial in Chaircraft’s manufacturing process: lumber preparation, frame parts production, and assembly. The lumber preparation unit provided dry lumber to the frame shop. Frame shop provided completed frame parts to the assembly unit. There were seven assembly lines for the production of seven lines of chair. Each assembly line was exclusive to a different chair line.
2.1 Lumber Preparation
`Chaircraft used solid southern hardwood for the construction of chair frames, which was cut from a number of different hardwood species.
Lumber purchasing and initial storage: There were 3 principal grades of lumber: first grade, number-one common, and number-two common. The company got its supply of lumber from an independent, commissioned broker who purchased lumber for the company. The
CASE STUDY 1
CHAIRCRAFT CORPORATION
Parul Joshi
Surabhi Shouche
Tanmay Lohani
October 17th, 2014
Contents
1. Chaircraft Corporation
2. Manufacturing Operations
2.1 Lumber Preparation
2.2 Frame Parts Production
2.3 Assembly
3. Production Scheduling
4. Analysis and Recommendations
4.1 Lumber Inventory
4.2 Variation in Material Flow
4.3 Piece wise Rate
4.4 Lot Sizing: EOQ VS SOQ
4.5 Planning Time Cycle
4.6 Finished Goods Inventory
5. Conclusions
6. References
7. Appendices
1. Chaircraft Corporation
The Chaircraft Corporation was located in a small southern community. It was a manufacturer of upholstered chairs, platform rockers, and recliners. It sold its products nationwide through a strong dealership network of 10,000 dealers. It clocked annual sales of $60 Million during fiscal year 1988-1989. In the year 1988, it employed 700 factory workers.
2. Manufacturing Operations
Chaircraft manufactured upholstered chairs from raw lumber, metal springs, cotton, fabric, and other materials. Chaircraft was an integrated manufacturer. An upholstered chair consists of 3 main components: (1) the frame; (2) upholstery; and (3) cover fabric.
Three main processes were crucial in Chaircraft’s manufacturing process: lumber preparation, frame parts production, and assembly. The lumber preparation unit provided dry lumber to the frame shop. Frame shop provided completed frame parts to the assembly unit. There were seven assembly lines for the production of seven lines of chair. Each assembly line was exclusive to a different chair line.
2.1 Lumber Preparation
`Chaircraft used solid southern hardwood for the construction of chair frames, which was cut from a number of different hardwood species.
Lumber purchasing and initial storage: There were 3 principal grades of lumber: first grade, number-one common, and number-two common. The company got its supply of lumber from an independent, commissioned broker who purchased lumber for the company. The