A linear programming computer package is needed. 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 1 2 3 $11 $12 $13 $9 $10 $9 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. Component 1 2 Supplier 1 Capacity 800 1,200 1,000 If the Edwards production plan for the next period includes 1,200 units of component 1 and 1,000 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier? Component 1, Supplier 1 Component 1, Supplier 2 Component 1, Supplier 3 Component 2, Supplier 1 Component 2, Supplier 2 Component 2, Supplier 3 800 400 0 0 0 1000 units units ✔units ✔units ✔units units What is the total purchase cost (in $) for the components? $ 25800
A linear programming computer package is needed. 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 1 2 3 $11 $12 $13 $9 $10 $9 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. Component 1 2 Supplier 1 Capacity 800 1,200 1,000 If the Edwards production plan for the next period includes 1,200 units of component 1 and 1,000 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier? Component 1, Supplier 1 Component 1, Supplier 2 Component 1, Supplier 3 Component 2, Supplier 1 Component 2, Supplier 2 Component 2, Supplier 3 800 400 0 0 0 1000 units units ✔units ✔units ✔units units What is the total purchase cost (in $) for the components? $ 25800
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Transcribed Image Text:A linear programming computer package is needed.
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.
Component
1
2
Supplier
1 2 3
$11 $12 $13
$9 $10 $9
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.
Supplier 12
Capacity 800 1,200 1,000
3
✓
If the Edwards production plan for the next period includes 1,200 units of component 1 and 1,000 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier?
Component 1, Supplier 1 800
Component 1, Supplier 2 400
Component 1, Supplier 3
0
Component 2, Supplier 1
0
Component 2, Supplier 2
Component 2, Supplier 3
0
1000
units
✔units
units
✓ units
✓
✓ units
✓
units
What is the total purchase cost (in $) for the components?
$ 25800
x
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