Question

Problem 4-17 Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec's production schedule calls for 5000 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown. Component Frame Support Strap Manufacturing Cost $38.00 $11.50 $6.50 Purchase Cost $51.00 $15.00 $7.50 Three departments are involved in the production of these components. The time in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows: Cutting 3.5 Component Frame Support Strap Capacity (hours) Department Milling 2.2 1.7 Shaping 3.1 2.6 1.7 1.3 0.8 350 420 680 a. Formulate and solve a linear programming model for this make-or-buy application. How many of each component should be manufactured and how many should be purchased? Let FM = number of frames manufactured FP = number of frames purchased SM = number of supports manufactured SP = number of supports purchased TM = number of straps manufactured TP = number of straps purchased Min 38 FM + 51 FP+ 11.5 SM + 15 SP + 6.5 TM + 75 TP s.t. 3.5 FM + 1.3 SM + 0.8 TM 21,000 2.2 FM + 1.7 SM < 25,200 3.1 FM + 2.6 SM 1.7 TM 40,800 1 FM + 1 FP VIANO 5,000 1 SM + 1 SP 10,000 TI

Need help with part e please

Answer 1

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Answer-e)

Yes, The current purchase is $51.00 and reduced cost is $3.577 indicate a purchase price below $47.423 solution may improve

FP=45 showes that 2714 frames purchased.