A linear programming computer package is needed.

Frandec Company manufactures, assembles, and rebuilds material-handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec's production schedule calls for5,500Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown.

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COMPONENT MANUFACTURING COST PURCHASE COST

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FRAME $39.00 $52.00

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SUPPORT $12.50 $16.00

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STRAP $7.50 $8.50

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Three departments are involved in the production of these components. The time (in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows.

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DEPATMENTS

COMPONENT CUTTING MILLING SHAPING

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FRAME 3.5 2.2 3.1

SUPPORT 1.3 1.7 2.6

STRAP 0.8 --- 1.7

CAPACITY (HOURS 350 420 680

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(a)

Formulate and solve a linear programming model for this make-or-buy application. (LetFM= number of frames manufactured,FP= number of frames purchased,SM= number of supports manufactured,SP= number of supports purchased,TM= number of straps manufactured, andTP= number of straps purchased. Express time in minutes per unit.)

MIN__________

CUTTING CONSTRAINT__________________

MILLING CONSTRAINT_________________

SHAPING CONSTRAINT _______________

FRAME CONSTRAINT _____________________

SUPPORT CONSTRAINT _________________

STRAP CONSTRAINT ____________________

FM,FP,SM,SP,TM,TP0

How many of each component should be manufactured and how many should be purchased? (Round your answers to the nearest whole number.)

(FM,FP,SM,SP,TM,TP) =____________

(b)

What is the total cost (in $) of the manufacturing and purchasing plan?

$______________

(c)How many hours of production time are used in each department? (Round your answers to two decimal places.)

Cutting____________hrs

Milling______________hrs

Shaping____________hrs

(d)

How much (in $) should Frandec be willing to pay for an additional hour of time in the shaping department?

$_______________

(e)

Another manufacturer has offered to sell frames to Frandec for $45 each. Could Frandec improve its position by pursuing this opportunity? Why or why not? (Round your answer to three decimal places.)

[---Select---(Yes 0R No)].The reduced cost of____________indicates that the solution[---Select---(can OR cannot)] be improved.