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Dublin Manufacturing assembles some equipment used in Amazon distribution centers. One product is called Running2. The assembly of the Running2 is made up of
Dublin Manufacturing assembles some equipment used in Amazon distribution centers. One product is called Running2. The assembly of the Running2 is made up of three components: a frame, two supports, and a metal strap. Frames, supports, and straps may be made by the company or purchased from an outside supplier. The production of the Running2 calls for at least 5,000 to be made next month. The manufacturing and purchase costs per unit are as shown: Component Cost of Manufacturing Cost of Purchasing Frame $39 Support $12 Strap $7.5 $52 $15 $9.0 Multiple departments at Dublin Manufacturing are involved in the production process of the components. The time (in minutes per unit) necessary to process in each department and the available (in hours) for these departments are as follows: Department Component Cutting Milling Shaping Frame 3.2 2.5 3.3 Support 1.4 1.7 2.7 Strap 1.1 1.9 Capacity (hours) 385 465 720
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