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The Aviston Electronics Company manufactures motors for toys and small appliances. The marketing department is predicting sales of 6 , 1 0 0 units of
The Aviston Electronics Company manufactures motors for toys and small appliances. The
marketing department is predicting sales of units of the Dynamonster motor in the next
quarter. This is a new high and meeting this demand will test Aviston's production capacities.
A Dynamonster is assembled from three components: a shaft, base, and cage. It is clear that
some of these components will have to be purchased from outside suppliers because of
limited inhouse capacity. The variable inhouse production cost per unit is compared with the
outside purchase cost in the following table:
Aviston's plant consists of three departments. The time requirements in hours of each
component
in each department if manufactured inhouse are summarized in the following table. The
hours available for Dynamonster production are listed in the last row:
Develop a LINGO model using SETS and DATA to answer the following questions:
How many decision variables are in the model?
Which, if any, departments have slack capacity?
What is the maximum price Aviston would pay to purchase an additional hour of time in the
Shapting Department? round your answer to decimals, no $sign or comma:
In the optimum solution there was one component that was not purchased from outside.
Which component was it and what would the cost of that component need to be in order for
Aviston to consider purchasing itround your answer to decimals, no $sign or commas:
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