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Component Frame Support Strap Manufacturing Cost Purchase Cost $38.00 $11.50 $ 6.50 $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: Department Milling Component Frame Cutting 3.5 2.2 Shaping 3.1 Support 1.3 1.7 2.6 Strap 0.8 Capacity (hours) 350 420 20 1.7 680 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? If required, round your answers to one decimal place. 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 ) s.t. FM+ 3.5FM FM FM SM+ SP+ TM+ TP SM +1.7SM SM FP SM FM, FP, SM, SP, TM, TP ≥ 0. Manufacture Purchase Frames Supports Straps +1.7TM TM SP TM TP ≥ b. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar.

Component Frame Support Strap Manufacturing Cost Purchase Cost $38.00 $11.50 $ 6.50 $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: Department Milling Component Frame Cutting 3.5 2.2 Shaping 3.1 Support 1.3 1.7 2.6 Strap 0.8 Capacity (hours) 350 420 20 1.7 680 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? If required, round your answers to one decimal place. 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 ) s.t. FM+ 3.5FM FM FM SM+ SP+ TM+ TP SM +1.7SM SM FP SM FM, FP, SM, SP, TM, TP ≥ 0. Manufacture Purchase Frames Supports Straps +1.7TM TM SP TM TP ≥ b. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 10E: Support department cost allocation comparison Refer to your answers to Exercises 7-9. Compare the...
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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.

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:

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? If required, round your answers to one decimal place.

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

What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar.

How many hours of production time are used in each department?

  1. Another manufacturer has offered to sell frames to Frandec for $45 each. Could Frandec improve its position by pursuing this opportunity?
  2.  
Component Frame Support Strap Manufacturing Cost Purchase Cost $38.00 $11.50 $ 6.50 $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: Department Milling Component Frame Cutting 3.5 2.2 Shaping 3.1 Support 1.3 1.7 2.6 Strap 0.8 Capacity (hours) 350 420 20 1.7 680 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? If required, round your answers to one decimal place. 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 ) s.t. FM+ 3.5FM FM FM SM+ SP+ TM+ TP SM +1.7SM SM FP SM FM, FP, SM, SP, TM, TP ≥ 0. Manufacture Purchase Frames Supports Straps +1.7TM TM SP TM TP ≥ b. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar.
Transcribed Image Text:Component Frame Support Strap Manufacturing Cost Purchase Cost $38.00 $11.50 $ 6.50 $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: Department Milling Component Frame Cutting 3.5 2.2 Shaping 3.1 Support 1.3 1.7 2.6 Strap 0.8 Capacity (hours) 350 420 20 1.7 680 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? If required, round your answers to one decimal place. 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 ) s.t. FM+ 3.5FM FM FM SM+ SP+ TM+ TP SM +1.7SM SM FP SM FM, FP, SM, SP, TM, TP ≥ 0. Manufacture Purchase Frames Supports Straps +1.7TM TM SP TM TP ≥ b. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar.
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