Problem 4 17 (Algorithmic) 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 Frandecs 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 Manufacturing Cost Purchase Cost Frame $33 00 $47 00 Support $10 50 $14 00 Strap $7 50 $8 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 Department Component Cutting Milling Shaping Frame 3 2 2 6 Support 1 3 1 6 2 1 Strap 0 9 1 6 Capacity (hours) 340 400 650 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 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 SM SP TM TP s t 3FM SM TM FM 1 6SM FM SM 1 6TM FM FP SM SP TM TP FM, FP, SM, SP, TM, TP 0 If required, round your answers to the nearest whole number Manufacture Purchase Frames Supports Straps B what is the total cosr of the manufaturing and purchasing plan when required, round your answer to the nearest dollar $ C How many hours of production time are used in each department If required, round your answer to two decimal places Department Hours of production time used Cutting Miling Shaping d How much should Frandec be willing to pay for an additional hour of time in the shaping department If requried,round your answer to two decimal places $ because there is (Slack or Surplus) of hours E Another manufacutrer has offered to sell frames to Frandec for 441 each Could Frandec iprove its position by pursuing this opportunity (Yes or No) Becuse the current purchase price is $ The reduced cost is $ which means that the solution may be inmproved if the cost is $ or below Please explain how to run the solver in Excel Thanks

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Problem 4-17 (Algorithmic) Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled

Problem 4-17 (Algorithmic)

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. Frandecs 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	Manufacturing Cost	Purchase Cost
Frame	$33.00	$47.00
Support	$10.50	$14.00
Strap	$7.50	$8.50

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:


	Department
Component	Cutting	Milling	Shaping
Frame	3	2	2.6
Support	1.3	1.6	2.1
Strap	0.9		1.6
Capacity (hours)	340	400	650

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?

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

s.t.

3FM

1.6SM

1.6TM

FM, FP, SM, SP, TM, TP ? 0

If required, round your answers to the nearest whole number.

	Manufacture	Purchase
Frames
Supports
Straps

B. what is the total cosr of the manufaturing and purchasing plan? when required, round your answer to the nearest dollar.

$___________?

C. How many hours of production time are used in each department? If required, round your answer to two decimal places.

Department	Hours of production time used
Cutting
Miling
Shaping

d. How much should Frandec be willing to pay for an additional hour of time in the shaping department? If requried,round your answer to two decimal places.

$_______ because there is (Slack or Surplus) of _______hours.

E. Another manufacutrer has offered to sell frames to Frandec for 441 each.Could Frandec iprove its position by pursuing this opportunity?

(Yes or No) / Becuse the current purchase price is $_____. The reduced cost is $ _________ which means that the solution may be inmproved if the cost is $ _______ or below.

Please explain how to run the solver in Excel Thanks.