Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Taking Discounts Universal Technologies, Inc. has identified two qualified vendors with the capability to supply some of its electronic components. For the coming year, Universal

Taking Discounts Universal Technologies, Inc. has identified two qualified vendors with the capability to supply some of its electronic components. For the coming year, Universal has estimated its volume requirements for these components and obtained price-break schedules from each vendor. (These are summarized as “all-units” discounts in the table below.) Universal’s engineers have also estimated each vendor’s maximum capacity for producing these components, based on available information about equipment in use and labor policies in effect. Finally, because of its limited history with Vendor A, Universal has adopted a policy that permits no more than 60% of its total unit purchases on these components to come from Vendor A. Vendor A Vendor B Product Requirement Unit price Volume required Unit price Volume required 1 500 $225 0–250 $224 0–300 $220 250–500 $214 300–500 2 1000 $124 0–600 $120 0–1000 $115 600–1000 (no discount) 3 2500 $60 0–1000 $54 0–1500 $56* 1000–2000 $52 1500–2500 $51 2000–2500 Total capacity (units) 2500 2000 Total capacity (units) 2500 2000 *For example, if 1400 units are purchased from Vendor A, they cost $56 each, for a total of $78,400. What is the minimum-cost purchase plan for Universal? The optimal solution is 345800.show me how you got to the solution on the excel sheet.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Science The Art Of Modeling With Spreadsheets

Authors: Stephen G. Powell, Kenneth R. Baker

4th Edition

978-1118517376, 9781118800348, 1118517377, 1118800346, 978-1118582695

More Books

Students also viewed these Operating System questions