White & Becker Tools (W&B) requires 2,000 electric motors next month for its product line of weed

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White & Becker Tools (W&B) requires 2,000 electric motors next month for its product line of weed trimmers. Each motor is composed of three components: a coil, a shaft, and housing. W&B has the capability to produce these components or purchase them from an outside vendor. The costs of producing them and purchasing them are shown in the following table.
White & Becker Tools (W&B) requires 2,000 electric motors next

The components that are produced by W&B must pass through three departments: fabrication, molding, and inspection. The number of hours each component requires in each department and the total number of hours available next month in each department are shown in the following table:

White & Becker Tools (W&B) requires 2,000 electric motors next

In order to determine the number of components that will be produced and the number that will be purchased, W&B has set the following goals, in rank order:
Rank 1: The total costs to produce and purchase components next month should not exceed $14,000.
Rank 2: Idle time in the fabrication department should be minimized.
Rank 3: At least 200 coils should be purchased from the vendor next month.
Determine the number of components produced and purchased next month, according to these ranked goals.

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Related Book For  book-img-for-question

Managerial Decision Modeling With Spreadsheets

ISBN: 9780136115830

3rd Edition

Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair

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