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7. Titleist is the leading manufacturer of golf balls. There is a three step process to make golf balls: forming the synthetic core, molding
7. Titleist is the leading manufacturer of golf balls. There is a three step process to make golf balls: forming the synthetic core, molding the exterior plastic and print and paint the ball. The main factory of Titleist is located in Fairhaven, Massachusetts. Titleist received an order from Dick's Sporting Good for three types of models of balls: ProV1, NXT and DT solo. The order requires 6,000 ProV1, 8,000 NXT and 7,000 DT solo. To create a ball requires the following minutes on each stage of the production process. Minutes of forming the core required per unit Minutes of molding the plastic required per unit Minutes of printing and painting required per unit ProV1 3 NXT 1.5 1 2 DT Solo 2 1 1 The factory in Fairhaven has the capacity to provide 25,000 minutes to forming the core, 15,000 minutes to mold the plastic and 10,000 minutes to print and paint. Titleist also has a subcontractor in Lowell, Massachusetts which can also produce identical Titleist balls. The cost to produce balls at the two locations is given in the following table Cost to Make Cost to Buy ProV1 $2 $1.25 NXT DT Solo $0.75 $2.25 $2.15 $1.50 Dick's has agreed to pay $40,000 for the order. What does Titleist do to minimize total costs? Explain. (15 points)
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