Question

Problem 4-11 (Algorithmic) Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company's needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows: Supplier Component 1 2 13 1 $12 $13 510 2 $11 $12 s10 Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities are as follows: 1 2 3 Supplier Capacity 550 1025 825 If the Edwards production plan for the next period includes 1025 units of component 1 and 825 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier? Round your answers the nearest whole number. If your answer is zero, enter "O". Supplier 1 2 3 Component 1 6,600 X Component 2 6,600 X What is the total purchase cost for the components? Round your answer to the nearest dollar. 21,025 X Feedback Check My Work Incorrect

Answer 1

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B C D E F G H K M N 3 4 Component 1 1 2 Component 2 5 3 1 2 3 Supplier Price 6 12 13 10 11 12 10 7 8 9 Demand Component 1 Component 2 1025 10 825 11 For component 1, supplier 3 & then supplier 1 price is low, should buy from them first 200 12 Balance capacity 350 For component 2 supplier 1 price is low should buy Cost for Cost for from them first component 1 component 2 Total cost 350 2400 3850 6250 475 0 5700 5700 0 8250 0 8250 825 10650 9550 20200 13 Capacity supplier 1 supplier 2 supplier 3 550 14 1025 15 1025 825 Total 825 0 16 1025 17 18 So total cost is $20,200 19 20 Suplier 21 Particulars Component 1 Component 2 200 0 825 22 350 475 0 23 24

For calculation ref:

B с D E F G H 1 K L M N 3 4 5 Component 1 12 3 1 Supplier Price Component 2 1 2 3 11 12 10 6 12 13 10 7 8 9 Demand Component 1 1025 Component 2 825 10 11 12 For component 1, supplier 3 & then supplier 1 price is low, should buy from them first Balance capacity =D9-F15 =D13-F13 =D14-F14 =D15 =D15-F15 Total =SUM(F13:F15) For component 2, supplier 1 price is low should buy from them first Cost for component 1 Cost for component 2 Total cost =G13 =F13*D6 =113*H6 =SUM(K13:L13) =D10-113 =F14*E6 =114*16 I-SUM(K14:L14) =G15 -F15*F6 =115*J6 =SUM(K15:L15) =SUM(113:J15) =SUM(K13:K15) =SUM(L13:L15) =SUM(M13:M15) Capacity supplier 1 supplier 2 supplier 3 13 550 14 1025 825 15 16 17 18 o total cost is $20,201 19 20 21 22 Particulars Suplier Component 1 =F13 |=F14 =F15 Component 2 =113 =114 =115 23