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Part B. Subcontracting allowed. We now allow some boards to be stuffed by a subcontrac tor. Assume that production of a computer with a board

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Part B. Subcontracting allowed. We now allow some boards to be stuffed by a subcontrac tor. Assume that production of a computer with a board stuffed by the subcontractor requires the same amount of time in case production and final assembly as production of a com- puter with a board stuffed at the factory. 7. Assume that the subcontractor is going to charge $110 for each desktop board stuffed and $100 for each portable board stuffed. Kiwi provides the subcontractor with the necessary materials. Should Kiwi employ the subcontractor to stuff boards? Argue why or why not without formulating and solving a new LP model. 8. Now formulate an LP model that includes subcontract- ing. In your formulation, distinguish between comput- ers produced with internally and externally stuffed boards. 9. Assume that in addition to the per board charge the sub- contractor is now going to include a fixed charge for stuffing a batch of boards (same charge regardless of the number of boards or their type). For what fixed charge will Kiwi be indifferent between subcontracting and stuffing all boards internally

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