Alinear programming computer package is needed. randec 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 4,500 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 Manufacturing Cost Purchase Cost Frame Support Strap Min 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. Department Cutting Milling Shaping 3.5 2.2 3.1 13 1.7 2.6 Strap 1.7 Capacity (hours) 350 420 680 (a) Formulate and solve a linear programming model for this make-or-buy application. (Let FM-number of frames manufactured, FP-number of frames purchased, SM-number of supports manufactured, SP-number Component Frame Support Cutting constraint Miting constraint Shaping constraint Frame constraint Support constraint Strap constraint $39.00 $12.50 $7.50 Shaping $52.00 $16.00 0.8 $8.50 FM, FP, SM, SP, TM, TP 20 How many of each component should be manufactured and how many should be purchased? (Round your answers to the nearest whole number) (FM, FP, SM, SP, TM, TP)-(1 ) hrs (b) What is the total cost (in $) of the manufacturing and purchasing plan? $ (c) How many hours of production time are used in each department? (Round your answers to two decimal places) Cutting number of supports purchased, TM-number of straps manufactured, and TP-number of straps purchased. Express time in minutes per unit) of supports purchased, TM-number of straps manufactured, and TP-number of straps purchased. Express time in minutes per unit)
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
 alt="A linear programming computer package is needed.
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 4,500 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 Manufacturing Cost Purchase Cost
Frame
Support
Min
Strap
Component
Frame
Support
Strap
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 constraint
Milling constraint
Shaping constraint
Frame constraint
$39.00
Support constraint
$12.50
Strap constraint
$7.50
Cutting
3.5
1.3
0.8
350
Department
2.2
Capacity (hours)
(a) Formulate and solve a linear programming model for this make-or-buy application. (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, and TP = number of straps purchased. Express time in minutes per unit.)
$52.00
1.7
$16.00
Milling Shaping
$8.50
420
3.1
2.6
1.7
680
FM, FP, SM, SP, TM, TP ≥ 0
How many of each component should be manufactured and how many should be purchased? (Round your answers to the nearest whole number.)
(FM, FP, SM, SP, TM, TP) =
(b) What is the total cost (in $) of the manufacturing and purchasing plan?
(c) How many hours of production time are used in each department? (Round your answers to two decimal places.)
Cutting
hrs
Milling
hrs
Shaping
hrs
(d) How much (in $) should Frandec be willing to pay for an additional hour of time in the shaping department?
(e) Another manufacturer has offered to sell frames to Frandec for $45 each. Could Frandec improve its position by pursuing this opportunity? Why or why not? (Round your answer to three decimal places.)
--Select--- V. The reduced cost of
indicates that the solution --Select--- be improved.
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