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Big Wheels are classic kid's toys that have been around for years and years. These ride-on tricycles have one big wheel at the front and

Big Wheels are classic kid's toys that have been around for years and years. These ride-on tricycles have one big wheel at the front and two smaller ones at the back and offer the perfect balance for kids to learn to ride a bike yet ensure stability, balance, and safety. They have three major components: a big wheel and pedal assembly, the plastic frame, and two small wheels. Given that they are embarking on their 50-year anniversary, they have orders for 25,000 Big Wheels. The current production requirements are as follows:

Requirements for Manufacturing

Component

Plastic

(in sq feet)

Time

(in minutes)

Space

(in cubic feet)

Cost to Manufacture

Cost to Purchase

BigWheel / Pedal

2

7

2

$9

$10

Plastic Frame

5

5

2

$6

$8

Rear wheel (each)

.5

1

.2

$2

$3

Available

110,000

270,000

75,000

Unfortunately, the company does not have the resources and capacity to manufacture all of the components to produce 50,000 Big Wheels so they investigated the cost to outsource (purchase) equivalent components. Develop a linear programming model to determine the optimal blend of manufacturing and outsourcing of each component in order to satisfy the 25,000 unit order of fully assembled Big Wheels at a minimum cost. Reminder: Two rear wheels are needed for each unit

Formulate the linear programming problem only. Be sure to define decision variables (HINT: create a decision variable for BigWheel/Pedal (Manufacture), BigWheel/Pedal (Outsource), Frame (Manufacture), Frame (Outsource), etc.), provide objective function, and all constraints.

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