Problem 9-17Frandec 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'sproduction 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 andpurchase costs per unit are shown.Component.FrameSupportStrapComponentFrameSupportStrapCapacity (hours)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:DepartmentMilling2.21.7SP number of supports purchasedMins.t.TM number of straps manufacturedTP number of straps purchased3.5FMManufacturing Cost$38.00$11.50$ 6.50a. 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? If required, round your answers to one decimal place.Let FMnumber of frames manufacturedFPnumber of frames purchasedSMnumber of supports manufacturedFMFM+FMFMCutting3.51.30.8350+FM, FP, SM, SP, TM, TP 2 0.FP+FP++1.7SM+SM420SM+SMSMPurchase Cost$51.00$15.00$ 7.50+SP+SPShaping3.12.61.7680++1.7TMTMTM+TMTPsS22TP 2cleancaptcha.lm.r.appspot.com FramesSupportsStrapsManufacture Purchaseb. 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?Department$CuttingMillingShapingHours of productiontime usedhourshoursd. How much should Frandec be willing to pay for an additional hour of time in the shaping department?Why or why not?hourse. Another manufacturer has offered to sell frames to Frandec for $45 each. Could Frandec improve its position by pursuing this opportunity?

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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Geoff Gullo owns a small firm that manufactures “Gullo Sunglasses.” He has the opportunity to sell a particular seasonal model to Land’s Start, a catalog retailer. Geoff offersLand’s Start two purchasing options.• Option 1: Geoff offers to set his price at $65 and agrees to credit Land’s Start $53 foreach unit Land’s Start returns to Geoff at the end of the season (because those unitsdid not sell). Because styles change each year, there is essentially no value in thereturned merchandise.• Option 2: Geoff offers a price of $55 for each unit, but returns are no longer accepted.In this case, Land’s Start throws out unsold units at the end of the season.This season’s demand for this model will be normally distributed with a mean of 200and a standard deviation of 125. Land’s Start will sell those sunglasses for $100 each.Geoff’s unit production cost is $25.a. How much would Land’s Start buy if it chose option 1? b. How much would Land’s Start buy if it chose option 2? c. Which option will…
Scenario Dan and Leo agree to buy and sell “groceries and sundries” from Public Growers, Inc., in their stores. The five-year contract does not define groceries and sundries, but the parties agree the number of products purchased should be consistent every week. COVID hits and Public Growers, Inc., has a hard time meeting the demand of its sellers. Brian, the produce manager for Public Growers, assures Dan and Leo they will always have enough fruit and vegetables for their stores. Dan and Leo filed a suit for breach of contract. Research three potential contract defenses for Public Growers, Inc., and explain how they could be utilized to avoid liability.
Scenario Dan and Leo agree to buy and sell “groceries and sundries” from Public Growers, Inc., in their stores. The five-year contract does not define groceries and sundries, but the parties agree the number of products purchased should be consistent every week. COVID hits and Public Growers, Inc., has a hard time meeting the demand of its sellers. Brian, the produce manager for Public Growers, assures Dan and Leo they will always have enough fruit and vegetables for their stores. Dan and Leo filed a suit for breach of contract. Determine whether parol evidence is admissible to explain the terms of the contract and whether any exceptions pursuant to the Uniform Commercial Code apply.
S1: Cost plus contract is a contract used on long term construction contracts in which the contractor agrees to a contract price that is fixed, either at the inception or at a fixed rate per unit of output, which in some cases may be subject to cost escalation clauses.S2: Variable contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee * A. Both are true B. S2 True; S1 False C. Both are false D. S1True; S2 False
Mr Nzimande owns a store that supplies purified water. His business has been rather successful of lately due to the water shortages in Durban. Mr Nzimande has a brilliant idea to create customised bottles for events. He notices that his neighbour Mr Naidoo runs a graphic design and printing company. He approaches him with the business idea. Mr Naidoo is keen and proposes brilliant graphic designs for the water bottles. Mr Nzimande wants to ensure that there is a contract in place between both parties with clear terms that reflect both of their interests. Question Mr Nzimande is 18 years of age, he understands that one of the essentialia of a contract includes that parties must have the capacity to contract in law. He further understands offer and acceptance, so there is no need to elaborate on that aspect of contract law in this question. You are required to outline seven (7) further essentialia that is necessary to be satisfied in order for a contract to come into existence. In your…
Jennifer has a small business mixing and selling essential oils. One product is a mixture of two oils, lavender and peppermint. She asked her assistant, Carmen, to check on two suppliers to determine the costs for her next batch. Carmen contacted the suppliers and got quotes from each for the order. She misplaced the number of ounces of each oil she needed to purchase. The information she has is: Supplier A: lavender: $5.80$5.80/ounce peppermint: $4.20$4.20/ounce Total cost: $128.40$128.40 Supplier B: lavender: $4.50$4.50/ounce peppermint: $5.00$5.00/ounce Total cost: $124$124 She decides to solve a system of equations to determine the number of ounces of lavender, LL and of peppermint, PP, she should order. What system of equations can Jennifer use to find LL and PP?
What could EBWS have done at the time of contracting to protect itself against the damages it would incur in the event the creamery suffered downtime due to faulty construction?
Notice that only a couple of years prior to the case time frame, the management of Robatelli's had begun an Internet order system. As management of Robatelli's considered the advantages of the Internet order system, it should also have considered the inherent risks of conducting business via the Internet. In a two (2) page response, discuss the following: Describe the new risks of Internet orders that Robatelli's management should have considered. The risks you describe should be specific to the Internet order system. Describe internal controls that Robatelli's should have implemented to lessen the risks you identify in part 1. If Robatelli's decides to move its data and software to a public cloud computing model, what additional risks should it consider

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