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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:
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 for 5000 Liftmasters 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. Component S'lanufacturing Cost Purchase Cost Frame $38.00 $51.00 Support $11.50 $15.00 Strap 5 6.50 $ 7.50 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: llcpu rt Im-nt ('ulllpi mum Cutting Milling Shaping Frame 3.5 2.2 3.] Support 1.3 1.7 2 .6 Strap 0.8 1.7 Capacity (hours) 350 420 680 a. Formulate and solve a linear programming model for this make-or-buy application. How many of each component should be manufactured and how many should be purchased? If required, round your answers to one decimal place. Let FM = number of frames manufactured FP = number of frames purchased SM = number of supports manufactured SP = number of supports purchased TM = number of straps manufactured TP = number of straps purchased Min FM|+ FP + SMI + SP + TM. TP S.t. 3.5FM SM + TM S FM + 1.7SM S FM SM + 1.7TM 5 FM FP SM SP TM + TP 2 FM, FP, SM, SP, TM, TP 2 0.Frames -_l:l 3. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar. 35:] :. Howr many hours of production time are used in each department? Hours of production Department _ time used d. Howr much should Frandec be willing to pay For an additional hour of time in the shaping department? $:l e. Another manufacturer has offered to sell frames to Frandec for $45 each. Could Frandec improve its position by pursuing this opportunity
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