Question: The superstructure production team needs some help understanding what their optimum outsourcing strategy should be. They have three main operations: welding, painting and assembly. Each

The superstructure production team needs some

The superstructure production team needs some help understanding what their optimum outsourcing strategy should be. They have three main operations: welding, painting and assembly. Each operation must occur in order to produce a superstructure. They can outsource the welding, painting or both, but must do the assembly internally. The following table describes the hours required for each basic superstructure type, available hours, demand, and revenue received for each superstructure for the next two-week planning period. Alpha Beta Gamma 6.6 - 8 8.2 Hrs required Welding Painting Assembly Demand Revenue each Available hrs 488 300 612 5.8 3.6 6.4 21 $3,500 5.5 8.5 34 $4,200 6.9 12 $4,800 Their outsourcing option has given them the following cost per unit for welding and painting Outsource Cost per unit Alpha Beta Gamma $403 $547 $595 $403 $452 $483 Welding Painting Develop an Excel model and solve to maximize their net revenue (revenue-outsourcing cost) and meet the constraints

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