Furniture Manufacturing Case Study

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The company is a furniture manufacturing company Question 1: Inventory System: The inventory system being used in Collage furniture is the Just in time inventory system. The factory follows the Just In Time system of inventory because of its belief that stocking manufactured or semi manufactured products for too long would increase the cost of storage and would also require a lot of space. Hence, the company starts producing the products just when they expect a purchase order to be placed in order to save any extra inventory costs. This is especially true for the unfinished or semi-finished parts of the products which are produced at assembly lines, which, if exposed to weather elements for too long, may cause deterioration to the quality of the product and require certain conditions to be maintained in the storage areas. So, the company produces such intermediate parts as and when required, eliminating the need for storing them for long periods of time. Technology Used: The manufacturing operations in the factory are mainly mechanized with aid from human labor as well. Objects which need high amounts of precision, are designed on computers and then produced using CNC Machines and other computer guided machines. However, certain types of furniture…show more content…
An example of such a product is folding chairs. Such products are treated as running products and for them, the company has an assembly line setup which completes the product in linear incremental stages with parts being added at each station that the product goes through. The assembly line is designed so that it can easily be shifted, depending on the nature of the product that is being made. Then there are certain purchase orders that consist of products that are unique in nature and require a different type of a setup, which is then treated as a project and a tailored setup is made to cater for these

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