Question
BookmarkBookmarked Benson Electronics manufactures three components used to produce cell telephones and other communication devices. In a given production period, demand for the three components
BookmarkBookmarked
Benson Electronics manufactures three components used to produce cell telephones and other communication devices. In a given production period, demand for the three components may exceed Benson's manufacturing capacity. In this case, the company meets demand by purchasing the components from another manufacturer at an increased cost per unit. Benson's manufacturing cost per unit and purchasing cost per unit for the three components are as follows:
Source | Component 1 | Component 2 | Component 3 |
Manufacturing | $4.50 | $5.00 | $2.75 |
Purchase | $6.50 | $8.80 | $7.00 |
Manufacturing times in minutes per unit for Benson's three departments are as follows:
Department | Component 1 | Component 2 | Component 3 |
Production | 2 | 3 | 4 |
Assembly | 1 | 1.5 | 3 |
Testing & packaging | 1.5 | 2 | 5 |
For instance, each unit of component 1 that Benson manufactures requires 2 minutes of production time, 1 minute of assembly time, and 1.5 minutes of testing and packaging time. For the next production period, Benson has capacities of 360 hours in the production department, 250 hours in the assembly department, and 300 hours in the testing and packaging department.
By using the information, find the optimal solution using an excel spreadsheet (please attach picture of excel spreadsheet)
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