1. Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assem- bled 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 Manufacturing Cost $38.00 $11.50 $ 6.50 Three departments are involved in the production of these components. The time (in min- utes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows: Cutting 3.5 1.3 0.8 350 Department Milling 2.2 1.7 Purchase Cost $51.00 $15.00 $ 7.50 Component Frame Support Strap Capacity (hours) Formulate and solve a linear programming model for this make-or-buy application. 420 Shaping 3.1 2.6 1.7 680

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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1.
Frandec Company manufactures, assembles, and rebuilds material handling equipment
used in warehouses and distribution centers. One product, called a Liftmaster, is assem-
bled 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
Manufacturing Cost
$38.00
$11.50
$ 6.50
Three departments are involved in the production of these components. The time (in min-
utes per unit) required to process each component in each department and the available
capacity (in hours) for the three departments are as follows:
Cutting
3.5
1.3
0.8
350
Department
Milling
2.2
1.7
Purchase Cost
$51.00
$15.00
$ 7.50
Component
Frame
Support
Strap
Capacity (hours)
Formulate and solve a linear programming model for this make-or-buy application.
420
Shaping
3.1
2.6
1.7
680
Transcribed Image Text:1. Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assem- bled 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 Manufacturing Cost $38.00 $11.50 $ 6.50 Three departments are involved in the production of these components. The time (in min- utes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows: Cutting 3.5 1.3 0.8 350 Department Milling 2.2 1.7 Purchase Cost $51.00 $15.00 $ 7.50 Component Frame Support Strap Capacity (hours) Formulate and solve a linear programming model for this make-or-buy application. 420 Shaping 3.1 2.6 1.7 680
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