Question
#2) A company produces three different types of wrenches: W1, W2, and W3. It has a firm order for 2,000 W1 wrenches, 3,750 W2 wrenches,
#2) A company produces three different types of wrenches: W1, W2, and W3. It has a firm order for 2,000 W1 wrenches, 3,750 W2 wrenches, and 1,850 W3 wrenches. Between now and the delivery date, the company has only 17,500 fabrication hours and 1,600 inspection hours. The time that each wrench requires in each department is shown in the table for this problem. Also shown are the costs to manufacture the wrenches in-house and the costs to outsource them. For labelling considerations, the company wants to manufacture in-house at least 60% of each type of wrench that will be shipped. How many wrenches should be outsourced? What will be the total cost to satisfy the order?
Wrench | Fabrication Hours | Inspection Hours | In-House Cost | Outsource Cost |
W1 | 2.25 | 0.25 | $17.00 | $19.00 |
W2 | 3.25 | 0.30 | $19.00 | $21.00 |
W3 | 3.75 | 0.45 | $22.00 | $24.00 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started