SRC Corporation is a leading manufacturer of electro mechanical coupling devices that have military applications on ships, aircrafts, and tanks. The company recently received a $750,000 order for various quantities of three different models of its coupling devices. Each device requires a certain amount of time to wire and harness. The following table summarizes the requirements for the three models of devices. Model 1 3000 Number Ordered Hrs. of wiring required per unit Hrs. of harnessing required per unit Model 2 Model 3 2000) 900 2 3 2 0.5 2 1 Unfortunately, SRC does not have sufficient wiring and harnessing capacity to fill the entire order by the due date. Internally it has only 10,000 hours of wiring capacity and 5,000 hours of harnessing capacity available to devote to this order. However, the company can subcontract any portion of this order to one of its suppliers. The unit costs of producing each model in-house and buying the finished devices from its supplier are shown in the table below. Cost to make (S/unit) Cost to buy (S/unit) Model 1 Model 2 Model 3 50 83 130 61 97 145 SRC wishes to figure out the best way to fill this order at the lowest possible cost. Please note that the current in-house wiring and harnessing capacities have already been paid for and therefore their costs do not have to be added to the total cost. Model 1 Model 2 Model 3 Number Ordered 3000 2000 900 2 2 3 Hrs. of wiring required per unit Hrs. of harnessing required per unit 1 2 0.5 Model 1 Model 2 Model 3 50 83 130 Cost to make ($/unit) Cost to buy ($/unit) 61 97 145 Order Size ($) Wiring capacity Harnessing capacity 750000 10000 hours 5000 hours Set up a spreadsheet model and analyze it to arrive at the optimal set of choices. Please provide a recommendation (in words) for what SRC should do. SRC Corporation is a leading manufacturer of electro mechanical coupling devices that have military applications on ships, aircrafts, and tanks. The company recently received a $750,000 order for various quantities of three different models of its coupling devices. Each device requires a certain amount of time to wire and harness. The following table summarizes the requirements for the three models of devices. Model 1 3000 Number Ordered Hrs. of wiring required per unit Hrs. of harnessing required per unit Model 2 Model 3 2000) 900 2 3 2 0.5 2 1 Unfortunately, SRC does not have sufficient wiring and harnessing capacity to fill the entire order by the due date. Internally it has only 10,000 hours of wiring capacity and 5,000 hours of harnessing capacity available to devote to this order. However, the company can subcontract any portion of this order to one of its suppliers. The unit costs of producing each model in-house and buying the finished devices from its supplier are shown in the table below. Cost to make (S/unit) Cost to buy (S/unit) Model 1 Model 2 Model 3 50 83 130 61 97 145 SRC wishes to figure out the best way to fill this order at the lowest possible cost. Please note that the current in-house wiring and harnessing capacities have already been paid for and therefore their costs do not have to be added to the total cost. Model 1 Model 2 Model 3 Number Ordered 3000 2000 900 2 2 3 Hrs. of wiring required per unit Hrs. of harnessing required per unit 1 2 0.5 Model 1 Model 2 Model 3 50 83 130 Cost to make ($/unit) Cost to buy ($/unit) 61 97 145 Order Size ($) Wiring capacity Harnessing capacity 750000 10000 hours 5000 hours Set up a spreadsheet model and analyze it to arrive at the optimal set of choices. Please provide a recommendation (in words) for what SRC should do
