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 suppliercan 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. Suppliercapacities are as follows.Supplier 1 23Capacity 400 800 600If the Edwards production plan for the next period includes 800 units of component 1 and 600 units of component 2, what purchases do you recommend? That is, how manyunits of each component should be ordered from each supplier?Component 1, Supplier 1unitsComponent 1, Supplier 2unitsComponent 1, Supplier 3unitsComponent 2, Supplier 1unitsComponent 2. Supplier 2unitsComponent 2, Supplier 3unitsWhat is the total purchase cost (in $) for the components? 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 thecompany's needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows.SupplierComponent121$11 $12 $132$9 $10 $9Each 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 suppliercan 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 Suppliercapacities are as follows.1 23SupplierCapacity 400 500 600If the Edwards production plan for the next period includes 800 units of component 1 and 500 units of component 2, what purchases do you recommend? That is how manyunits of each component should be ordered from each supplier?Component 1, Supplier 1unitsComponent 1, Supplier 2unitsComponent 1 Supplier 3unitsComponent 2. Supplier 1unitsComponent 2, Supplier 2units

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A firm’s cost of goods sold last year was $3,410,000, and the firm operates 52 weeks per year. It carries seven items in inventory: three raw materials, two work-in-process items, and two finished goods. The following table contains last year’s average inventory level for each item, along with its value. a. What is the average aggregate inventory value? b. How many weeks of supply does the firm maintain? c. What was the inventory turnover last year?
Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements (D) are 40,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the attached table. Annual Freight Costs Shipping Quantity (Q) Supplier 10,000 20,000 Price/Unit (p) Annual Holding Cost/Unit (H) Lead Time (L) (days) Annual Administrative Cost Material Costs Abbott $11,000 $8,500 $29 $5.80 4 $11,000 $232,000.00 Baker $12,000 $9,500 $31 $6.20 3 $12,000 $1,240,000 Carpenter $9,000 $7,000 $28 $5.60 8 $9,000 $1,120,000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using the supplier [X] and a shipping quantity of [X] units is the lowest cost alternative, with annual total costs to Horizon Cellular of [X]. (Quantity and Annual Total Costs are integer…
A firm’s cost of goods sold last year was $3,410,000, and the firm operates 52 weeks per year. It carries seven items in inventory: three raw materials, two work-in-process items, and two finished goods. The following table contains last year’s average inventory level for each item, along with its value. a. What is the average aggregate inventory value? b. How many weeks of supply does the firm maintain? c. What was the inventory turnover last year?
Suppose the lowest and highest demand levels are updated to 70,000 and 145,000, respectively. What is the expected cost for Option 1 now?
Explain the economic order quantity (EOQ) and its impact on cost of operations.
Discuss how the bullwhip measure can be applied to supply chain analysis?
ASCM 2020-2021 case competition, In navigating pandemic supply challenges, What is the best-case scenario for MediCrystals Co. has to adopt over the suppliers facing operational challenges? What inventory could be obsolete during this crisis?
with the complexity of the product range and the need for high levels of quality, she has found it difficult to influence sourcing strategy. Formal procurement procedures and systems at PEC are very limited. Currently, the buyer waits to receive a requisition from the production function to place orders for equipment, materials and products. This means that orders are usually urgent and the buyer has little opportunity to review alternative suppliers or sourcing approaches. Low value maintenance, repair and operations (MRO) requirements cause particular problems as the requisitions are difficult to aggregate. This causes excessive and time-consuming administration for the buyer. Testing requirements Pressure testing machinery used for testing the quality of seams in the protective work-wear is nearing the end of its life and will soon require replacement. Product testing is essential to confirm final quality of manufacture and conformance to industry standards. The test equipment is…
Supply Chains are made up of people, processes, and technologies. All three components need to improve overtime for a supply chain to regain competitive. What is the focus of "Theory of Constraints an approach toprocess improvement? a. Reduce Waste b. Relieve Bottlenecks c. Reduce variability d. Reduce steps in the production process
A firm’s cost of goods sold last year was $3,410,000, and the firm operates 52 weeks per year. It carries seven items in inventory: three raw materials, two work-in-process items, and two finished goods. The following table contains last year’s average inventory level for each item, along with its value. a. What is the average aggregate inventory value? b. How many weeks of supply does the firm maintain? c. What was the inventory turnover last year? Category Part Number Average Level Unit Value Raw materials Work-in-process Finished goods 1 2 3 4 5 6 7 15000 2500 3000 5000 4000 2000 1000 $3.00 5.00 1.00 14.00 18.00 48.00 62.00

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