Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
Bartleby Related Questions Icon

Related questions

Question

paresh

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
expand button
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
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Text book image
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Text book image
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Text book image
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Text book image
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Text book image
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON