Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company's needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows. Component 1 2 Supplier 1 2 3 $13 $14 $15 $11 $12 $11 Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities are as follows. Supplier 12 3 Capacity 400 800 600 (a) If the Edwards production plan for the next period includes 800 units of component 1 and 600 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier? Component 1, Supplier 1 Component 1, Supplier 2 Component 1, Supplier 3 Component 2, Supplier 1 Component 2, Supplier 2 Component 2, Supplier 3 units units units units units units
Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company's needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows. Component 1 2 Supplier 1 2 3 $13 $14 $15 $11 $12 $11 Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities are as follows. Supplier 12 3 Capacity 400 800 600 (a) If the Edwards production plan for the next period includes 800 units of component 1 and 600 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier? Component 1, Supplier 1 Component 1, Supplier 2 Component 1, Supplier 3 Component 2, Supplier 1 Component 2, Supplier 2 Component 2, Supplier 3 units units units units units units
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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