Question: Problem 4-17 (Algorithmic) Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled
Problem 4-17 (Algorithmic)
Frandec 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. Frandecs production schedule calls for 4000 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 | Manufacturing Cost | Purchase Cost |
| Frame | $31.00 | $44.00 |
| Support | $8.50 | $12.00 |
| Strap | $5.50 | $6.50 |
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:
| Department | |||
| Component | Cutting | Milling | Shaping |
| Frame | 2.8 | 1.8 | 2.4 |
| Support | 1.1 | 1.4 | 1.9 |
| Strap | 0.7 | 1.4 | |
| Capacity (hours) | 330 | 390 | 640 |
- 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?
Let FM = number of frames manufactured FP = number of frames purchased SM = number of supports manufactured SP = number of supports purchased TM = number of straps manufactured TP = number of straps purchased Min fill in the blank 1FM + fill in the blank 2FP + fill in the blank 3SM + fill in the blank 4SP + fill in the blank 5TM + fill in the blank 6TP s.t. fill in the blank 7FM + fill in the blank 8SM + fill in the blank 9TM fill in the blank 10 fill in the blank 11FM + fill in the blank 12SM fill in the blank 13 fill in the blank 14FM + fill in the blank 15SM + fill in the blank 16TM fill in the blank 17 fill in the blank 18FM + fill in the blank 19FP fill in the blank 20 fill in the blank 21SM + fill in the blank 22SP fill in the blank 23 fill in the blank 24TM + fill in the blank 25TP fill in the blank 26 FM, FP, SM, SP, TM, TP 0 If required, round your answers to the nearest whole number. If an amount is zero, enter "0"
Manufacture Purchase Frames fill in the blank 27 fill in the blank 28 Supports fill in the blank 29 fill in the blank 30 Straps fill in the blank 31 fill in the blank 32 - What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar. $ fill in the blank
- How many hours of production time are used in each department? If required, round your answer to two decimal places.
Department Hours of production time used Cutting fill in the blank Milling fill in the blank Shaping fill in the blank - How much should Frandec be willing to pay for an additional hour of time in the shaping department? If required, round your answers to the nearest whole number. If an amount is zero, enter "0". $ fill in the blank
- Another manufacturer has offered to sell frames to Frandec for $38 each. Could Frandec improve its position by pursuing this opportunity?
YesNo
Why or why not? If required, round your answers to the nearest cent. Because the current purchase price is $ fill in the blank The reduced cost is $ fill in the blank which means that the solution may be improved if the cost is $ fill in the blank or below.
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