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Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company's
Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company's needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows: | ||||||||||
Supplier | ||||||||||
Component | 1 | 2 | 3 | Production | ||||||
1 | $32 | $23 | $14 | 2000 | ||||||
2 | $10 | $11 | $12 | 1,000 | ||||||
Capacity | 1800 | 900 | 500 | |||||||
Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities and Edwards' production plan are given above. |
How many units of each component should be ordered from each supplier? What is the total purchase cost for the components?
Write the entire linear programming model (show it in your answer). Plug the model into LINDO. Show the LINDO output in your answer. Hint : We want to minimize costs. Let Xij be the number of component i ordered from supplier j, where i = 1, 2 and j = 1, 2, 3.
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