Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a strap. Frandec's production schedule calls for 5000 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased fr outside supplier. Manufacturing and purchase costs per unit are shown. Component Frame Support Strap Manufacturing Cost $38.00 $11.50 $6.50 Purchase Cost $51.00 $15.00 $7.50 Three departments are involved in the production of these components. The time (in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows: Component Frame Support Cutting 3.5 Department Milling Shaping 3.1 EITT Strap Capacity (hours) 350 1.7 - 420 680 a. Formulate and solve a linear programming model for this make-or-buy application. How many of each component should be manufactured and how many should be purchased?

Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a strap. Frandec's production schedule calls for 5000 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased fr outside supplier. Manufacturing and purchase costs per unit are shown. Component Frame Support Strap Manufacturing Cost $38.00 $11.50 $6.50 Purchase Cost $51.00 $15.00 $7.50 Three departments are involved in the production of these components. The time (in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows: Component Frame Support Cutting 3.5 Department Milling Shaping 3.1 EITT Strap Capacity (hours) 350 1.7 - 420 680 a. Formulate and solve a linear programming model for this make-or-buy application. How many of each component should be manufactured and how many should be purchased?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section11.4: Marketing Models

Problem 30P: Seas Beginning sells clothing by mail order. An important question is when to strike a customer from...

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