The Excel Skills this Project Exercises
In terms of Excel model-building and data-analysis skills, the Oak Products project gives you practice with:
Fuqua students preparing to take Fuqua's core Decision Models class may find practice with these skills particularly useful.
Imagine that you're a new employee at a small, family-owned North Carolina furniture manufacturing company called Oak Products, Inc. (OP). OP produces a line of high-quality solid oak chairs. The chairs have been designed to use a number of interchangeable components: long and short dowels, heavy and light seats, heavy and light rungs, and a rail that caps the back. The interchangeable parts help protect OP against sudden shifts in demand.
OP manufactures six types of chairs: Captain, Mate, American High, American Low, Spanish King, and Spanish Queen. Each type of chair requires a certain number of different parts. At OP, finishing activity for the chairs requires one month. For this reason only chair components that are on hand when the month's production starts can be used in chairs that will be produced during that month.
As a new employee you're rotated through the different areas of the company's operations and you get a chance to review the company's production plans. In August, OP has always had as its target the production of forty chairs of each type. However, as you look over the factory data it appears that a different product mix might be more profitable. To help OP maximize its total August profits you do the following:
* The Oak Products problem is drawn from Prentice-Hall's "Introductory Management Science" by Eppen, Gould, Schmidt, Moore, and Weatherford.