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5 . DO THIS PROBLEM USING EXCEL Solver and generate the reports to answer the questions below Jones Metal Products has recently accepted a contract
DO THIS PROBLEM USING EXCEL Solver and generate the reports to answer the questions below
Jones Metal Products has recently accepted a contract to deliver three types of flywheels Economy Durabilt, and Superfly to a new customer. Quantities required are as follows:
Economy units
Durabilt units
Superfly units
The flywheels are manufactured through a three step process as follows:
Production Time Required hours Available Capacity
Economy Durabilt Superfly
Cuttting hours
Grinding hours
Finishing hours
The order must be delivered by December or Jones Metal is subject to a significant late penalty. Given the production time requirements, management is concerned that the deadline cant be met using inhouse resources only. Fortunately, Jones Metal has a longtime relationship with another manufacturer, East Cincinnati Fabricating, who may be able to produce some of the flywheels. Respective manufacturing costs are shown below:
Economy Durabilt Superfly
Jones Metal $ $ $
East Cincinnati $ $ $
Jones Metal wants to fill the order while minimizing costs, what is the optimal solution?
A Jones Metal was able to add an additional hours of capacity to the cutting process. Does this change the optimal solution? Why or why not?
B In order for Jones Metal to reduce the cost of this order and produce more internally what should they do and why?
C If the manufacturing costs for the Durabilt flywheel was reduced to $ does this change the optimal solution? What information in the report are you using to make this conclusion?
D If the cost to purchase the Durabilt flywheel from East Cincinnati increases to $ does this change the optimal solution? Why or why not?
E The contract quantity for the Economy flywheel increased by units. Will this change the recommended optimal solution and what is the new cost of the order? Please show how you came up with the new cost?
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