Question: Dublin Manufacturing assembles some equipment used in Amazon distribution centers. One product is called Running2. The assembly of the Running2 is made up of three
Dublin Manufacturing assembles some equipment used in Amazon distribution centers. One product is called Running2. The assembly of the Running2 is made up of three components: a frame, two supports, and a metal strap. Frames, supports, and straps may be made by the company or purchased from an outside supplier. The production of the Running2 calls for at least 5,000 to be made next month. The manufacturing and purchase costs per unit are as shown:
| Component | Cost of Manufacturing | Cost of Purchasing |
| Frame | $39 | $52 |
| Support | $12 | $15 |
| Strap | $7.5 | $9.0 |
Multiple departments at Dublin Manufacturing are involved in the production process of the components. The time (in minutes per unit) necessary to process in each department and the available (in hours) for these departments are as follows:
| Department | |||
| Component | Cutting | Milling | Shaping |
| Frame | 3.2 | 2.5 | 3.3 |
| Support | 1.4 | 1.7 | 2.7 |
| Strap | 1.1 | 1.9 | |
| Capacity (hours) | 385 | 465 | 720 |
Use Excel and Solver to formulate your model and solve the problem. Don't forget to convert hours to minutes on the RHS of the manufacturing constraints.
Write your response to the questions in the space provided. Include the Excel spreadsheet and sensitivity report with your paperwork upload.
The variables are:
FM = # of frames made
FP = # of frames purchased
SM = # of Supports made
SP = # of supports purchased
STM = # of straps made
STP = # of straps purchased
Round all answers to two decimal points.
Questions:
1. How many of each component (frame, support, and strap) should be made, and how many were purchased?
2. What is the total cost of the manufacturing and purchasing of the components?
3. Based on the information found on the sensitivity report, what is the range of optimality for frames made and supports made?
4. If the company can produce an additional frame, what is the $ increase/decrease to the value of the objective function?
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