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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

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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 from four components: a frame, a motor, two supports, and a metal strap. Frandec's production schedule calls for 5000 Uftmasters 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:r or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown. Component Manufacturing Cost Purchase Cost Frame $32.00 $45.00 Support $9.50 $13.00 Strap $5.50 $3.50 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 capacityr (in hours) for the three departments are as follows: De pa rtn1 ent Component Cutting I'I'l llllng Shaping Frame 2 . 9 1.9 2 . 5 Support 1.2 1.5 2 Strap 0 . 8 1 . 5 Capacity (hours) 330 390 640 a. Formulate and solve a linear programming model for this make-or-buy application. HowI many of each component should be manufactured and how many should be purchased? \fIf required, round your answers to the nearest whole number. -J-J b. What is the totai oost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar. s-x c. How many hours of production time are used in each department? If required, round your answer to two decimal piaoes. Hours of production Department time used @ d. How much should Frandec be willing to pay for an additionai hour of time in the shaping department? If required, round your answer to two decimal piaoes. $ E] J because there is slack-.f 0111:] hours. e. Another manufacturer has offered to sell frames to Frandec for $39 each. Could Frandec improve its position by pursuing this opportunity? Yes x Why or why not? If required, round your answers to the nearest cent. Because the current purchase price is $ E] J . The reduced cost is $ X which means that the solution may be improved if the cost is s X or below

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