Amelia Ltd. makes a plastic tricycle that is composed of three major components: a handlebar-front wheel-pedal assembly,
Question:
Amelia Ltd. makes a plastic tricycle that is composed of three major components: a handlebar-front wheel-pedal assembly, a seat and frame unit, and rear wheels. The company has orders for 48,000 of these trikes. Current schedules yield the following information.
Cost to | Cost to | ||||
Requirement s | |||||
Component | Plastic | Time | Space | Manufacture | Purchase |
Front | 12 | 40 | 8 | 16 | 24 |
Seat/Frame | 16 | 24 | 8 | 12 | 18 |
Rear wheel (each) | .20 | 8 | .4 | 2 | 6 |
Available | 100000 | 320000 | 60000 |
The company obviously does not have the resources available to manufacture everything needed for the completion of 24000 tricycles so has gathered purchase information for each component. Develop a linear programming model to tell the company how many of each component should be manufactured and how many should be purchased in order to provide 24000 fully completed tricycles at the minimum cost.
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton