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How many alternators and generators should AltGen produce itself, and what number of these products should it purchase from GenAdd in order to fill the

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How many alternators and generators should AltGen produce itself, and what number of these products should it purchase from GenAdd in order to fill the customer demand at the lowest possible cost?

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3. Question You are the owner of a company, called AltGen, that produces and markets alternators and generators in the North American market. Your company has recently received a large order from a preferred customer for alternators and generators. Each alternator and generator requires specialized wiring and bolts to produce. The table below summarizes the requirements of demand, bolts, and wiring per unit of alternator and Alternator Generator Number of units ordered from customer 5000 3000 Wiring: Yards required per unit 2 1.5 Bolts: Number required per unit 8 At the moment, you company does not have the production capacity and parts required to fulfill the entire order. The company only has 6,000 yards of wire available and only 30,000 bolts. The company is, however, able to outsource some of its production for this order to a subsidiary in San Francisco, called GenAdd. The cost of production for both companies are: Alternator Generator Cost to produce in-house $ 50 $ 50 Cost to buy in 60 $ 80 How many alternators and generators should AltGen produce itself, and what number of these products should it purchase from GenAdd in order to fill the customer demand at the lowest possible cost? Minimize Alternator Generator total cost Production cost $50.00 $60.00 $0.00 Purchasing cost $60.00 $80.00 $0.00 $0.00 Alternator Generator Number of units to produce Number of units to purchase Total production 0 0 Sign Demand 5000 3000 Required Required for for Total Total Constraints alternator generator required Sign available Wiring per unit 0

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