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Smyth Window Product Costs 101 202 303 404 Assembly Costs $51 $81 $121 $145 Outsource Costs $64 $99 $135 $172 101 202 303 404

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Smyth Window Product Costs 101 202 303 404 Assembly Costs $51 $81 $121 $145 Outsource Costs $64 $99 $135 $172 101 202 303 404 Total Cost Assembled Quantity Outsource Quantity Required Amount 300 250 200 210 Hours Required (per unit) 101 202 303 404 Hrs Used Pick 0.70 0.80 0.90 0.75 Assemble 1.00 1.00 1.25 1.50 Inspect 0.25 0.30 0.60 0.75 Hr Avail 220 Smyth Window Smyth Window has an order for 4 products (101, 202, 303, 404). The company can assemble any or all these window products in-house or outsource their production to a partner company. The number of units required for each product are provided in the Smyth Window worksheet along with the unit costs to assemble the products in-house or to buy the products from partner. If Smyth assembles the products in-house, there are three stages in this process: pick, assemble, inspect. The amount of time required for each product type in each of the three stages is given in the worksheet. Each of these three stages has a limitation on the total time available for this order. The goal for Smyth Window is to minimize the total cost of filling the order. 350 100

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