Case ID: 4555
Solution ID: 35965
Words: 611
Price $ 75

FoldRite Furniture Company Planning to Meet a Surge in Demand Brief Case

Case Solution

Foldrite furniture needs to tackle the increased demand of the summer. For this reason, there are several options that Fodrite needs to consider. Not only the cost savings but other qualitative aspects of the options also need to be considered. Let’s discuss the options one by one and compare them with each other. Before moving forward to the analysis of the situations, the amount of existing labour needs to be calculated. The following table depicts the computations. 

Excel Calculations

         Production Planning

·         Demand Forecast Per Month                                                                                                                    

·         Beginning Inventory                                                                                                                                      

·         Safety Requirement of Stock                                                                                                                     

·         Production Requirement                                                                                                                             

·         Loss due to Defect                                                                                                                                         

·         Finished Goods                                                                                                                                                

·         Ending Inventory                                                                                                                                                            

·         Chase

·         Overtime

·         Design Change

·         Outsourcing

·         Average Manufacturer's Price (AMP) and Cost of Manufacturing for FoldRite Products  

·         Calculation of Existing Labor                                                                                       

·         AMP     

·         Raw Mat             

·         Required Labor                

·         Labor Cost                                          

·         Total cost            

·         Margin

·         Production Hours Required                                                                                                        

·         Production Hours Available                                                                                                        

·         Deficit/Surplus of Labour Hours                                                                                                

·         Additional Labor Hired/Existing Labour Laid Off                                                                                 

·         Number of Labors Working                                                                                                        

·         Cost of Required Labour                                                                                                              

·         Cost of New Hired Labor                                                                                                              

·         Total Hiring Costs of Hired Labor

·         Total Costs of Hired Labor

·         Total Costs of Hired Labor

Questions Covered