The case study describes a small furniture manufacturing company that began focusing on custom furniture designs but has since started producing standard furniture pieces for retail outlets. This diversification has led to issues in the company's internal manufacturing operations and its relationships with other functional areas. The manager must make both short-term decisions around scheduling, resource allocation and delivery times, as well as long-term decisions involving workforce levels, facilities and inventory investments. Producing standard pieces has caused conflicts over scheduling priorities and increased costs through rising inventory levels and warehousing needs, diminishing profit margins.

1. WELCOME TO PRESENTATION
ON
CASE STUDY
PRESENTED BY:
TAJUL ISLAM
ID-128

2. CASE SUMMARY
This case describes a small furniture manufacturing company that has gained a
reputation for creative designs and quality by focusing on producing custom-
designed furniture. As its reputation grew it began to sell some standard furniture
pieces to retail outlets. The overall growth in sales volume and the diversification
into the production of standard furniture pieces have caused a number of issues
to arise concerning both the internal manufacturing operations and its
relationship to the other functional areas of the company.

3. Q 1. WHAT TYPES OF DECISIONS MUST THE MANAGER MAKE DAILY FOR HIS
COMPANY’S OPERATIONS TO RUN EFFECTIVELY AND IN THE LONG RUN?
Short term decisions:
a) Set priorities and schedule orders.
b) Length of time of promising delivery.
c) Allocation of resources.

4. Long term decisions:
a) Amount of money for inventory investment.
b) Level of workforce.
c) Facilities to be laid out for both items.

5. Q 2. HOW DID SALES AND MARKETING AFFECT
OPERATIONS WHEN THEY BEGAN TO SELL
STANDARD PIECES TO RETAILS OUTLETS?
Standard furniture pieces compete on a different set of competitive priorities than
custom designed pieces.
Introducing a standard line developed conflict and scheduling problems have
resulted.

6. Q 3. HOW HAS THE MOVE TO PRODUCING
STANDARD FURNITURE PIECES AFFECTED THE
FINANCIAL STRUCTURE OF THE COMPANY.
a) Inventory cost and operating costs are rising.
b) Profit margin is smaller.
c) Profit margin is becoming low because of extra warehousing.