Problem 4-17 (Algorithmic) Frandec Company manufactures, assembles, and rebuilds material handling equipment used in war

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Problem 4-17 (Algorithmic)
Frandec Company manufactures, assembles, and rebuilds materialhandling equipment used in warehouses and distribution centers. Oneproduct, called a Liftmaster, is assembled from four components: aframe, a motor, two supports, and a metal strap. Frandec’sproduction schedule calls for 5000 Liftmasters to be made nextmonth. Frandec purchases the motors from an outside supplier, butthe frames, supports, and straps may be either manufactured by thecompany or purchased from an outside supplier. Manufacturing andpurchase costs per unit are shown.
Three departments are involved in the production of thesecomponents. The time (in minutes per unit) required to process eachcomponent in each department and the available capacity (in hours)for the three departments are as follows:

Problem 4 17 Algorithmic Frandec Company Manufactures Assembles And Rebuilds Material Handling Equipment Used In War 1 (28.92 KiB) Viewed 14 times

Problem 4-17 (Algorithmic) 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 metal 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 from an outside supplier. Manufacturing and purchase costs per unit are shown. Component Frame Support Strap Component Manufacturing Cost $32.00 $9.50 $6.50 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: Frame Support Strap Capacity (hours) Purchase Cost $45.00 $13.00 $7.50 Cutting 2.9 1.2 0.8 330 Department Milling 1.9 1.5 390 Shaping 2.5 2 1.5 640
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? Let Min s.t. FM = number of frames manufactured FP = number of frames purchased SM = number of supports manufactured SP = number of supports purchased TM = number of straps manufactured TP = number of straps purchased 2.9FM FM Frames FM+ Supports Straps FM FM FP+ FP + 1.5SM + SM Manufacture Purchase SM+ SM If required, round your answers to the nearest whole number. SM SP + SP +1.5TM FM, FP, SM, SP, TM, TP ≥ 0 TM TM+ TM TP ≤ ≤ ≤ 2 TP 2
b. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar. $ c. How many hours of production time are used in each department? If required, round your answer to two decimal places. Department Cutting Milling Shaping $ Hours of production time used hours hours hours d. How much should Frandec be willing to pay for an additional hour of time in the shaping department? If required, round your answer to two decimal places. because there is e. Another manufacturer has offesurplus slack of Because the current purchase price is $ hours. Frandec for $39 each. Could Frandec improve its position by pursuing this opportunity? Why or why not? If required, round your answers to the nearest cent. The reduced cost is $ which means that the solution may be improved if the cost is $ or below.