Edwards Manufacturing Company purchases two component partsfrom three different suppliers. The suppliers have limited capacity, andno one supplier can meet all the company's needs. In addition, thesuppliers charge different prices for the components. Componentprice data (in price per unit) are as follows:SupplierComponent 1 2 31 $10 $14 $132 $12 $12 $12Each supplier has a limited capacity in terms of the total number ofcomponents it can supply. However, as long as Edwards providessufficient advance orders, each supplier can devote its capacity tocomponent 1, component 2, or any combination of the twocomponents, if the total number of units ordered is within its capacity.Supplier capacities are as follows:Supplier 1 2 3Capacity 550 1025 800If the Edwards production plan for the next period includes 1050 unitsof component 1 and 800 units of component 2, what purchases doyou recommend? That is, how many units of each component shouldbe ordered from each supplier?

Given: Production planSupplier 1Supplier 2Supplier 3Component 11,050$10$14$13Component 2…

Answered: Edwards Manufacturing Company purchases…

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 hospital treating COVID patients needs to buy gloves, gowns, and masks for the health care professionals working at the facility. The hospital has two suppliers who can supply the items. The cost, and the maximum number of each item each supplier can provide is given below: Supplier A Supplier B Gloves (cost, max units) ($0.30/unit, 20,000) ($0.35/unit, 11,000) Gowns Masks ($2.00, ($2.50, 5000) 10,000) ($1.75, 7000) ($2.55, 9,500) The hospital immediately needs 30,000 units of gloves, 5500 units of gowns, and 12,500 masks. To account for the economies of scale in logistics, the Supplier A has a requirement of at least 25,000 units in the order, while Supplier B has a requirement of a minimum order size of 10,000 units and a maximum order size of 20,000. What is is the minimum total cost of order that the hospital needs to pay to the suppliers to get the items?
Your head of division has asked you to evaluate the alternatives for producing newly designed jig on milling machine. He gives you the following facts: An old milling machine valued at RM 150,000 exists in the warehouse that can be modified for the new jig. The production line supervisor has given an estimate of RM 25,000 to modify this machine. It is hoped that the milling machine will be able to meet production requirements at full capacity. Another vendor, CARE Sdn Bhd, has produced the machine five years ago and can easily do the same modifications for RM45,000. The cooling system used for this machine is not environmentally safe and would require some disposal costs. CARE Sdn Bhd has offered to build a new milling machine to be more environmental friendly and a higher capacity for a price RM250,00. For this scenario: (a) Define the problem statement. (b) Explain ONE (1) key assumption. (c) Explain THREE (3) alternatives available.
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Below are the market prices and historical prices that your company has been paying for three different purchasing teams. Which of the purchasing teams is performing the BEST? Steel Paper Fuel a) Steel Ob) Paper PPI (Market) Oct-19 173.7 176.3 166.8 Oct-20 191.7 186.5 187.6 O) Fuel O d) None of the teams are performing well Oe) There is not enough information to make a determination Actual (Historical) Oct-19 2.25 27 132.75 Oct-20 3 28.8 145
B15. The restaurant uses 24 bottles of wine to operate and it has 3 bottles in hand. Calculate the Desired Ending Inventory (DEl) if the number of days in the delivery period is 2 and the safety factor is 10%. Using the Periodic Order Method, calculate the number of bottles that the restaurant should order.
What are some qualities of products that make them suitable candidates for storage in a single location? Who is the least likely to profit from this situation?
Josh Smith, the materials manager at a retail store, has determined that a particular product experienced 5 turns last year, with an annual sales volume of $15 million. What was the average inventory value for this product last year? $2.5 million $2.75 million $3 million $5 million
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James Calender is the buyer for "Joe's Radio Hut", a local electronics chain that has developed a loyal customer base with its quality service and competitive pricing. Due to the short selling lives of electronics products, James has only a single opportunity to order the new GO multifunction photo printer and hair dryer. The item sells for $139.24 and the per unit cost is $128.93. Any units remaining at the end of the season must be disposed of at a cost of $18.04. Demand for the item is believed to be normally distributed with a mean 605 and standard deviation 145.2. What is the cost of shortage? (specify answer to 2 decimal places)What is the critical fractile? (specify answer to 3 decimal places)What is the cost minimizing order quantity? (specify answer as a whole number)
As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far. Item % of Revenue Selling Price $1.20 $2.00 $1.00 $1.00 Variable Cost Soft Drink $0.60 24 25 $0.90 $0.30 Wine Coffee 31 Candy $0.35 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You ostimate labor cost to be $260.00 (5 booths with 2 people each) Even if nothing is sold, your labor cost will be $280.00, so you decide to consider this a fixed cost Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-oven point in dollars for the St. Cloud Theatre Company = $(round your response to two decimal places).

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