White & Becker Tools (W&B) requires 2,000 elec- tric motors next month for its product line of weed trimmers. Each motor is composed of three com- ponents: a coil, a shaft, and housing. W&B has the capability to produce these components or purchase them from an outside vendor. The costs of produc- ing them and purchasing them are shown in the following table.

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33 White & Becker Tools (W&B) requires 2,000 elec-
tric motors next month for its product line of weed
trimmers. Each motor is composed of three com-
ponents: a coil, a shaft, and housing. W&B has the
capability to produce these components or purchase
them from an outside vendor. The costs of produc-
ing them and purchasing them are shown in the
following table.
COMPONENT
Coil
Shaft
Housing
DEPART-
MENT
PRODUCTION
COST PER UNIT
Fabrication 0.5
Molding
0.4
Inspection 0.2
$2.60
$1.80
$1.40
The components that are produced by W&B
must pass through three departments: fabrication,
molding, and inspection. The number of hours each
component requires in each department and the
total number of hours available next month in each
department are shown in the following table:
0.2
0.7
0.3
PURCHASE
COST PER UNIT
COIL SHAFT HOUSING AVAILABILITY
(HR.) (HR.)
(HR.)
(HR.)
$3.12
$2.16
$1.68
0.6
0.3
0.4
3,000
3,000
1,800
In order to determine the number of components
that will be produced and the number that will be
purchased, W&B has set the following goals, in
rank order:
Rank 1: The total costs to produce and purchase
components next month should not exceed
$14,000.
Rank 2: Idle time in the fabrication department
should be minimized.
Rank 3: At least 200 coils should be purchased from
the vendor next month.
Determine the number of components produced and
purchased next month, according to these ranked
goals.
Transcribed Image Text:33 White & Becker Tools (W&B) requires 2,000 elec- tric motors next month for its product line of weed trimmers. Each motor is composed of three com- ponents: a coil, a shaft, and housing. W&B has the capability to produce these components or purchase them from an outside vendor. The costs of produc- ing them and purchasing them are shown in the following table. COMPONENT Coil Shaft Housing DEPART- MENT PRODUCTION COST PER UNIT Fabrication 0.5 Molding 0.4 Inspection 0.2 $2.60 $1.80 $1.40 The components that are produced by W&B must pass through three departments: fabrication, molding, and inspection. The number of hours each component requires in each department and the total number of hours available next month in each department are shown in the following table: 0.2 0.7 0.3 PURCHASE COST PER UNIT COIL SHAFT HOUSING AVAILABILITY (HR.) (HR.) (HR.) (HR.) $3.12 $2.16 $1.68 0.6 0.3 0.4 3,000 3,000 1,800 In order to determine the number of components that will be produced and the number that will be purchased, W&B has set the following goals, in rank order: Rank 1: The total costs to produce and purchase components next month should not exceed $14,000. Rank 2: Idle time in the fabrication department should be minimized. Rank 3: At least 200 coils should be purchased from the vendor next month. Determine the number of components produced and purchased next month, according to these ranked goals.
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