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Problem-3: White & Becker Tools (W&B) requires 2,000 electric motors next month for its product line of weed trimmers. Each motor is composed of
Problem-3: White & Becker Tools (W&B) requires 2,000 electric motors next month for its product line of weed trimmers. Each motor is composed of three components: a coil, a shaft, and housing. W&B has the capability to produce these components or purchase them from an outside vendor. The costs of producing them and purchasing them are shown in the following table. PRODUCTION COMPONENT COST PER UNIT PURCHASE COST PER UNIT Coil Shaft $2.60 $3.12 Housing $2.16 $1.68 $1.80 $1.40 The components that are produced by W&B must pass through three departments: fabrication, molding, and inspection. The number of hours each component requires in each department and the total number of hours available next month in each department are shown in the following table: DEPART- MENT COIL SHAFT HOUSING AVAILABILITY (HR.) (HR.) (HR.) (HR.) Fabrication 0.5 0.2 0.6 3,000 Molding 0.4 0.7 0.3 3,000 Inspection 0.2 0.3 0.4 1,800 In order to determine the number of components that will be produced and the number that will be purchased, W&B has set the following goals, in rank order: Rank 1: The total costs to produce and purchase components next month should not exceed $14,000. Rank 2: Idle time in the fabrication department should be minimized. Rank 3: At least 200 coils should be purchased from the vendor next month. Determine the number of components produced and purchased next month, according to these ranked goals.
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