The Livermore Manufacturing assembles some equipment used in Amazon distribution centers. One product is called Runningmaster. The assembly of the Runningmaster is made up of four components: a frame, a motor, two supports, and a metal strap. The motors are purchased from an outside vendor, but the frames, supports, and straps may be made by the company or purchased from an outside supplier. The production of the Runningmaster calls for at least 5,250 to be made next month. The manufacturing and purchase costs per unit are as shown: Component Cost of Manufacturing Cost of Purchasing Frame $37 $53 Support $12 $15 Strap $7.5 $8.5 Multiple departments at Livermore Manufacturing are involved in the production process of the components. The time (in minutes per unit) necessary to process in each department and the available (in hours) for these departments are as follow: Component Department Cutting Milling Shaping Frame 3.3 2.3 3.1 Support 1.4 1.8 2.5 Strap 9 Capacity (hours) 375 460 7400 Strap 9 Capacity (hours) 375 460 1.8 710 Use Excel and Solver to formulate your model and solve the problem. Don't forget to convert hours to minutes on the RHS of the manufacturing constraints. Write your response to the questions in the space provided. Be sure to include the Excel spreadsheet and sensitivity report with your paperwork upload. Questions: 1. How many of each component (frame, support, and strap) should be made, and how many purchased? 2. What is the total cost of the manufacturing and purchasing of the components? 3. Based on the information found on the sensitivity report, what is the range of optimality for frames made and supports made? 4. If the company is able to produce an additional frame, what is the $ increase/decrease to the value of the objective function?
The Livermore Manufacturing assembles some equipment used in Amazon distribution centers. One product is called Runningmaster. The assembly of the Runningmaster is made up of four components: a frame, a motor, two supports, and a metal strap. The motors are purchased from an outside vendor, but the frames, supports, and straps may be made by the company or purchased from an outside supplier. The production of the Runningmaster calls for at least 5,250 to be made next month. The manufacturing and purchase costs per unit are as shown: Component Cost of Manufacturing Cost of Purchasing Frame $37 $53 Support $12 $15 Strap $7.5 $8.5 Multiple departments at Livermore Manufacturing are involved in the production process of the components. The time (in minutes per unit) necessary to process in each department and the available (in hours) for these departments are as follow: Component Department Cutting Milling Shaping Frame 3.3 2.3 3.1 Support 1.4 1.8 2.5 Strap 9 Capacity (hours) 375 460 7400 Strap 9 Capacity (hours) 375 460 1.8 710 Use Excel and Solver to formulate your model and solve the problem. Don't forget to convert hours to minutes on the RHS of the manufacturing constraints. Write your response to the questions in the space provided. Be sure to include the Excel spreadsheet and sensitivity report with your paperwork upload. Questions: 1. How many of each component (frame, support, and strap) should be made, and how many purchased? 2. What is the total cost of the manufacturing and purchasing of the components? 3. Based on the information found on the sensitivity report, what is the range of optimality for frames made and supports made? 4. If the company is able to produce an additional frame, what is the $ increase/decrease to the value of the objective function?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Transcribed Image Text:The Livermore Manufacturing assembles some equipment used in Amazon distribution
centers. One product is called Runningmaster. The assembly of the Runningmaster is made up
of four components: a frame, a motor, two supports, and a metal strap. The motors are
purchased from an outside vendor, but the frames, supports, and straps may be made by the
company or purchased from an outside supplier. The production of the Runningmaster calls
for at least 5,250 to be made next month. The manufacturing and purchase costs per unit are
as shown:
Component
Cost of Manufacturing
Cost of Purchasing
Frame
$37
$53
Support
$12
$15
Strap
$7.5
$8.5
Multiple departments at Livermore Manufacturing are involved in the production process of
the components. The time (in minutes per unit) necessary to process in each department and
the available (in hours) for these departments are as follow:
Component
Department
Cutting
Milling
Shaping
Frame
3.3
2.3
3.1
Support
1.4
1.8
2.5
Strap
9
Capacity (hours)
375
460
7400
Transcribed Image Text:Strap
9
Capacity (hours)
375
460
1.8
710
Use Excel and Solver to formulate your model and solve the problem. Don't forget to convert
hours to minutes on the RHS of the manufacturing constraints.
Write your response to the questions in the space provided. Be sure to include the Excel
spreadsheet and sensitivity report with your paperwork upload.
Questions:
1. How many of each component (frame, support, and strap) should be made, and how many
purchased?
2. What is the total cost of the manufacturing and purchasing of the components?
3. Based on the information found on the sensitivity report, what is the range of optimality for
frames made and supports made?
4. If the company is able to produce an additional frame, what is the $ increase/decrease to
the value of the objective function?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.